Blame it on JP Morgan’s recent disclosure of its $1.3b new expenses related to faulty mortgages and foreclosures.
Bloomberg noted that JPMorgan set aside $314 million for buying back defective loans and incurred $1 billion in litigation costs caused mostly by mortgages, according to its Oct. 13 report.
In the report, Paul Miller, the FBR Capital Markets & Co. analyst said that the total may top $120 billion because mortgage buyers such as Fannie Mae are becoming more aggressive, and claims are spreading to loans written after banks said they reformed their practices.
View the full report here.
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