While the recent settlement with JPMorgan Chase & Co (JPM) may help put legacy mortgage issues to bed for one bank, it seems pretty clear that the settlement set a precedent that other banks are likely to soon follow. The Wall Street Journal reports:
Officials at the U.S. Justice Department, New York Attorney General’s Office and other agencies that are part of the settlement have said the deal could serve as a framework for resolutions with other lenders facing a slew of litigation and investigations.
Experts say it’s likely a matter of when, not if, more deals are announced.
“Everybody’s using the word template … so I think we’re likely to see more,” said Carl Tobias, professor of law at the University of Richmond.
While it is unclear which bank may be next, a handful of financial institutions have disclosed mortgage investigations by various agencies and are facing litigation by regulators or investors.