AIG, JPMorgan, Bank of America fined for illegal mortgage lending
Fox Sports 1 – New York City, NY – AIG’s mortgage lending practices were unlawful, the Federal Deposit Insurance Corporation said Thursday.
According to a notice sent to JPMorgan Chase & Co., AIG made improper loan representations to its mortgage clients and its mortgage lending activities were “incompatible with the bank’s business practices and the bank could not be trusted with a loan guarantee,” according to a regulatory filing.
AIG has agreed to pay $17.5 billion to settle the SEC charges.
The settlement also includes $5 billion in penalties, including $6.5 million for unlawful marketing, $1 billion for violations of the Fair Credit Reporting Act and $500 million for fraud.
JPMorgan Chase declined to comment.
The company also agreed to cease making false and misleading statements to consumers.
The $5.1 billion settlement comes less than two months after AIG filed a lawsuit against JPMorgan Chase alleging the bank misled the public about the risk of mortgage fraud.
On Thursday, the New York Federal Reserve said it would begin to review how it conducts its mortgage reviews and monitor the conduct of other banks. “
This settlement will also allow AIG to focus on continuing to serve the mortgage and credit card communities, while taking the necessary steps to protect its reputation and its financial system.”
On Thursday, the New York Federal Reserve said it would begin to review how it conducts its mortgage reviews and monitor the conduct of other banks.
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