JPMorgan Chase & Co. (JPM), the largest U.S. bank, will pay borrowers $2 billion in the form of mortgage relief and direct cash payments to settle home-loan abuse claims with regulators.
The bank will make a cash payment of $753 million and set aside $1.2 billion toward foreclosure prevention efforts as part of an $8.5 billion deal with 10 banks and their regulators announced Jan. 7, JPMorgan said in a regulatory filing today.
JPMorgan will take a $700 million pretax charge in the fourth quarter related to the settlement, according to the New York-based lender. It’s scheduled to report earnings Jan. 16.
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