The residential mortgage division of JPMorgan Chase saw its net earnings more than double to $577 million in the fourth quarter, thanks to rising loan demand and strong profit margins in residential finance.

Moreover, during an earnings conference call early Friday morning company executives predicted that the megabank's GSE-related buyback problems would end this year. In the fourth quarter, JPM took a $340 million charge because of Fannie Mae/Freddie Mac related buybacks. (Since the buyback plague began two years ago, Chase has taken $2.6 billion in charges because of repurchases.)

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