Mortgage

JPMorgan, FDIC continue to battle over WaMU five years later

According to The Wall Street Journal, five years after JPMorgan Chase (JPM) acquired Washington Mutual, the mega lender is still arguing with the Federal Deposit Insurance Corp. over the nuts and bolts of the 39-page purchase agreement.  

The question of who bears responsibility for Washington Mutual's legal liabilities is taking on increasing urgency as J.P. Morgan negotiates a pact with the Justice Department that would end probes of soured mortgage bonds issued by J.P. Morgan and Washington Mutual during the housing boom.

The Justice Department is trying to insert language into the settlement stipulating that none of the costs the bank pays regarding Washington Mutual will be passed to the FDIC, said people close to the talks. J.P. Morgan wants the ability to recover costs associated with Washington Mutual from the FDIC receivership that liquidated the thrift in 2008.

Most Popular Articles

With record-low mortgage rates, originators and real estate agents aren’t taking a holiday anytime soon

Low rates are making this summer one for the record books. Accordingly, loan officers, underwriters, real estate agents and those working in title and settlement offices are continuing to work the long hours that have become the norm since March. Not that they’re complaining.

Jul 02, 2020 By

Latest Articles

Is it worth it for lenders to reopen physical offices?

What are the mortgage industry’s plans when it comes to re-entry? Many in the industry believe that increased digitization of the industry lends itself well to remote work.

Jul 06, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please