<br>JPMorgan's Mortgage Putback Risk<br><br>JPMorgan Chase's (JPM) takeover acquisitions during the recent crisis have left it exposed to lawsuits involving some of the worst performing subprime deals such as those issued by Long Beach, WAMU and Bear Stearns. District attorneys recently dropped objections to Bank of America's (BAC ) $ 8.5 billion mortgage settlement. As BofA's settlement draws to a close, private RMBS investors, including PIMCO and BlackRock, have pivoted and are now focused on JPM.<br><br>Mortgage Putbacks<br><br>Mortgage repurchase claims worth over $ 150 billion have been filed against JPM. WAMU and Lengthy Beach shelves would be the main contributors. GHD Purple In its quarterly filings, JPM disclosed over $ 170 billion in putback litigation lawsuits. Reduction quantities could be less than the disputed quantities as some proceeds could be recouped in the sale of foreclosed properties. JPM reviews severities, loss given defaults, are at 60% for loans it repurchased in the GSEs.<br><br>Takeaway: JPMorgan could lose tens of billions in private RMBS repurchases.<br><br>(click to enlarge)<br><br>(click to enlarge)<br><br>Uneasy lies the head that wears ghd iv styler a crown<br><br>RMBS bond holders appear to be focusing on deals issued by JPM or one of its acquisitions - with more than
