Cuomo, Schneiderman To Split The Spoils Of JPMorgan Settlement

Posted by Patrick Barnard on January 21, 2014 No Comments
Categories : Residential Mortgage

Time to divvy up the spoils.

After squabbling over the funds for weeks, New York Gov. Andrew Cuomo and New York Attorney General Eric Schneiderman have reportedly agreed to split the first $163 million of the state's $613 million share of a settlement with JPMorgan Chase over the sale of faulty mortgage-backed securities.

The $613 million settlement is part of a record $13 billion settlement that JPMorgan reached with federal and state officials in November.

As per a Bloomberg News report, about $81.5 million of the settlement will be under Cuomo's control and will be applied toward housing programs, while the remaining $81.5 million will be distributed by Schneiderman's office to support anti-foreclosure programs.

Under an earlier deal, Schneiderman's office was to get about 85% of the total settlement and distribute it over the next four years. Cuomo's office, however, balked at that arrangement, saying it gave the attorney general too much leeway and too little oversight over the funds, according to the report.

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