With just two days left in office, the Obama administration is close to bringing three mortgage-related actions to a conclusion.
Last month,
a pair of tentative Department of Justice settlements were disclosed by both Credit Suisse and Deutsche Bank AG.
The settlements were tied to the financial institutions’ roles in issuance and marketing of residential mortgage-backed securities.
On Wednesday, the Justice Department announced that it finalized the settlement with Deutsche Bank.
The agreement will cost the Frankfurt, Germany-based bank $7.2 billion — including a $3.1 billion civil penalty under the Financial Institutions Reform, Recovery and Enforcement Act and $4.1 billion in relief to distressed borrowers and communities.
Also today, the Justice Department
announced that the Credit Suisse settlement has been finalized for $5.28 billion — including a $2.48 billion FIRREA civil penalty and $2.8 billion in other relief.
In addition, the Wall Street Journal, citing a person familiar with the matter, reported that
JPMorgan Chase & Co. has agreed to pay $55 million to settle allegations of mortgage discrimination. The settlement resolves allegations that mortgage broker clients of Chase charged black and Hispanic borrowers higher rates than white borrowers from 2006 to 2009 in violation of the Fair Housing Act.
Word of the three actions comes just two days before President-elect Donald J. Trump is inaugurated.
