States Get Share of $13 Billion JPMorgan Chase Settlement
- November 19, 2013
- By Pamela M. Prah
New York will get more than $1 billion of the $13 billion settlement with JPMorgan Chase that resolves federal and state lawsuits over risky mortgage practices, the largest share among states.
As part of the settlement, $9 billion will be paid to settle federal and state civil claims related to the company’s packaging and marketing of “toxic mortgages,” the U.S. Department of Justice announced Tuesday.
Of that $9 billion:
• $613.8 million settles claims by New York
• $298.9 million settles claims by California
• $100 million settles claims by Illinois
• $34.4 million settles claims by Massachusetts
• $19.7 million settles claims by Delaware
The settlement requires JPMorgan Chase to also provide $4 billion in consumer relief across the country, including mortgage modifications for homeowners at risk of foreclosure.
New York Attorney General Eric T. Schneiderman said that in addition to $613 million in cash, the state also will get approximately $400 million in consumer relief.
As Stateline has reported, in previous large mortgage settlement with states, fewer than half of the states used funds for housing programs.
The settlement does not absolve JPMorgan or its employees from facing any possible criminal charges.