According to Mosby, "Any estimate
of JPM's ultimate exposure from lawsuits on the private label side is a real guess." "They are dealing with five levels: Fannie, Freddie, the Federal Housing Administration (FHA), FHFA and private label. JPMorgan wants to get through the first four of those, and then be left with the private label stuff they have to fight for the next several years," he says. With home prices continuing to rise Mosby says "a lot of those private label securities are boing to perform well enough that the investors' appetite to go through that battle is probably going to be less."