US financial giant, JPMorgan Chase & Co and US government has agreed on a $4 billion consumer relief package as part of a $13 billion deal.

The $4 billion payment would compensate for write-downs of mortgage loans, demolition in blighted areas and lower monthly payments for homeowners. Shaun Donovan, secretary of the U. S. Department of Housing and Urban Development was involved in the discussions with the bank as part of the comprehensive deal with the financial giant.

US financial giant, JPMorgan Chase has agreed to pay a total of $5.1 billion to settle Federal Housing Finance Agency claims relating to the home loans and mortgage-backed securities sold by the company to Fannie Mae and Freddie Mac. The banking giant will pay $4 billion to settle FHFA’s 2011 lawsuit that accuses the company of selling faulty mortgage bonds to Fannie Mae and Freddie Mac.

The agreement is to require JPMorgan to pay the amount until the 2016 under the independent monitor. The agreements come as chief executive; Jamie Dimon looks to repair the bank’s relationship with the US authorities and the investors.