11-20-2013 J.P. Morgan Chase just settled with the Justice Department over a variety of legal issues related to the mortgage debacle. Apparently they were not forthright about the mortgages they sold on the secondary market. They were weaker mortgages than advertised. In the agreement J.P. Morgan is to provide 4 Billion in aid to distressed borrowers. The use of the funds is to be completed by 12/2016.
J.P. Morgan acquired Washington Mutual and I think this is at least part of the cause of it’s legal woes. I’m not sure if the 4 Billion will go exclusively to former Washington Mutual and Bear Stearn’s borrowers or to borrowers at large. For those of you borrowers who are upside down or behind on your payments, I’d recommend you follow this. The big question is how long will it take for the aid to trickle down. See the article below.