More regulatory trouble for JPMorgan

The Financial Times reports JPMorgan Chase is in the hot seat for mortgage-backed securities it sold Fannie Mae and Freddie Mac pre-crisis.

Read: FINRA beefs up transparency in mortgage-backed market

“The Federal Housing Finance Agency, a government regulator, sued JPMorgan and 17 other banks in 2011. It said the bank falsely claimed that loans backing $33bn of mortgage-backed securities complied with underwriting guidelines and that it ‘significantly overstated the ability of the borrowers to repay their mortgage loans,’” the report says.

The FHFA is demanding more than $6 billion to settle the claim.

Read more here.

Also read:

Mortgage securities to re-emerge in 2013

SEC charges two former JP Morgan Chase traders

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.