American bank JPMorgan (JPM) has agreed to pay 5.1 billion dollars to resolve the U.S. Federal Housing Finance Agency (FHFA) claims that it misled mortgage giants Fannie Mae (FNMA) and Freddie Mac about risky mortgage securities before the housing market collapsed.
The bank added that the agreement relates to approximately 33.8 billion dollars of securities purchased by Fannie Mae and Freddie Mac from JP Morgan, Bear Stearns and Washington Mutual from 2005 - 2007, the BBC reports.
According to the report, the bank will pay 4 billion dollars to Fannie Mae and Freddie Mac for violating U.S. securities law and an additional 1.1 billion dollars for misrepresenting the quality of single-family mortgages.
JP Morgan said the settlement resolves the biggest case against the firm relating to mortgage-backed securities.
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