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J.P. Morgan Chase, Bank of America, Citigroup, Wells Fargo face myriad of foreclosure lawsuits

By Ariana Eunjung Cha

JPMorgan Chase is facing two potential class-action lawsuits alleging fraud in foreclosures, the company said in a regulatory filing Tuesday.

The lawsuits, which were filed against Washington Mutual Bank and JPMorgan Chase & Co. in U.S. District Court for the Northern District of Illinois, and against Chase Home Finance in California state court, allege "common law fraud and misrepresentation, as well as violations of state consumer fraud statutes," JPMorgan said.

The bank said it also faces suits regarding mortgage-backed securities from Cambridge Place Investment Management, a hedge fund, and brokerage Charles Schwab

J.P. Morgan's disclosure comes as three other major banks -- Bank of America, Citigroup and Wells Fargo -- said Friday that they could suffer rising legal costs because lawsuits about the foreclosure mess.

Bank of America it is dealing with lawsuits from investors who bought more than $375 billion mortgage-backed securities, alleging that the offerings contained "material misrepresentations and omissions."

Citigroup said the parties suing it for its underwriting process of residential mortgage-backed securities include investors Charles Schwab and the Federal Home Loan Banks of Chicago and Indianapolis. It said the lawsuits "are in their preliminary stages."

Wells Fargo said multiple class actions have been filed against it and other banks "challenging aspects of the foreclosure process." The San Francisco-based bank said it "cannot estimate the possible loss or range of loss" from those legal actions.

By Ariana Eunjung Cha  | November 9, 2010; 12:49 PM ET
Categories:  Housing  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   StumbleUpon   Technorati   Google Buzz   Previous: PNC: New foreclosures resuming with 'enhanced procedures'
Next: Economic agenda: Wednesday, Nov. 10, 2010


It's about time someone decided to stick it to Wells Fargo. They have been screwing homeowners since this whole mess began. Could this possibly put them out of business? One could only hope.

Posted by: msedory | November 9, 2010 1:17 PM | Report abuse

There is an estimate that from one of the lawsuits the banks owe California between $60 billion and $120 billion for defrauding the state and its localities out of mortgage recordation fees. That includes triple damages because of the fraud.

Posted by: StanKlein | November 9, 2010 1:22 PM | Report abuse

great to see some, ya know, oversight for banker-felons who have made being lender servicers into casino jackpots.
once their stocks take hits they will be forced to the settlement tables with families who just want to pay prevailing mtg. rates.
that is hardly unreasonable, and would match the rates banker-felons are forced to give the vulture speculators who are not raiding Fla., NV & AZ, looking for firesale prices.
Banks were unjustly enriched by using loopholes to *insist* on collecting boom-time mtg. interest.
Thanks but no thanks. Modify me, or have the house back.
Thanks for nothing, Timmy G., and Phyllis Caldwell. While you dithered and paced the (no-penalties) road for banker-felons to steal an estimated 12-14 million homes over four years, states and just plain homeowners have been left to battle alone.
Nice bank bailouts you got there, banker-felons. Would be a shame to see anything happen to...your stock.
Ha. Payback's a witch.

Posted by: FloridaChick | November 9, 2010 1:44 PM | Report abuse

Oh I think many, many more lawsuits will be filed. I think a boycott of Bank of America, including their ATM machines would be lovely. You see, their own employees are selling their stock lately. Wonder why???

Posted by: suziq2 | November 9, 2010 5:21 PM | Report abuse

Interest rates are simply incredible on mortgages right now. It's not uncommon to see 30 year rates down in low fours and 15 year rates in the threes. Week after week, the rates keep dropping If you are looking for rates in three then search online for "123 Mortgage Refinance"

Posted by: alexpablo | November 10, 2010 3:37 AM | Report abuse

I am one of those who has been screwed by Chase.

Due to loss of income we filed for a modiifcation so my VA disability and ss would make it possible to do payments. I have a VA loan and therefore went through the qualification of being able to afford a home and bought a home in the price range I qualified for. Now under water as the house in 07 appraised at 165,000 and now 119,000

It took 6 months for the modifcation process and during time instructed not to make payments. I did as told, turned in all papers and then denied for not making payments.

On three occasions I was given a trial period to do payments then there would be modification. Each time took 2-4 months to do. As before told not to make payments in process. Once got the trial period and I started making payments as insturcted, then denied or suspended for for various policy changes not told about like filing papers, not making a down payment on the trial when never knew about it. One time I got the trial on July 17 with first payment due on July 1st and then suspended after 2 payments for not doing the July 1st payment.

I have been throug this twice in last 90 days and told not eligable because I had not made 12 payments so investor denied modification. Never mind in the last couple of years and these two occasions I told not to make payments during process so not to mess up the numbers for modification and when start making payments required, in the middle of them I am suspended for one reason or another Chase came up with.

Told yesterday Gov is the investor, when asked what agency in the large Government told VA and all up to them. Call my rep who has been helping with this VA is not the investor and Chase has a tendency to lie about this.

From conversations with VA this appears to be an on going problem with Chase. They start the modification process and then find reasons to suspend them for reasons the homeowner had no knowledge was required even as they are making the trial period payments.

Seems to me and others maybe Chase and some of their investors are not wanting to make modifications so they can get homes at the reduced value and take paper loss of value and then sell homes later at better prices.

I have shown several times income situtation now good and can afford home, but they keep starting things and then deny the continuance of the modification.

Posted by: Anonymous | November 10, 2010 10:33 AM | Report abuse

I called the U.S. District Court for the Northern District of Illinois to try to get the filings that were referred to in this widely posted article. Was told by someone at the court that the filings were unavailable.
Any one else have a link to any of the, as yet undisclosed, lawsuit docs?
Please post them.

Posted by: sirstevedom | November 10, 2010 3:33 PM | Report abuse

Wells Fargo is vigrously defending its appraisal fraud and mortgage fraud. Here is the proof.

Letter to Wells Fargo Spokeswpman Vickee Adams,

Dear Ms. Vickee Adams,

In your recent Wells Fargo's press release, you declared that ""Our records show that Wells Fargo's foreclosure affidavits are accurate, When the company finds employees that don't follow procedure, it takes "corrective action."

That's a lie. I can say for a fact that Wells Fargo made us fraudulent mortgage loan and foreclosed my home based on hugely inflated and fraudulent appraisal and refused to correct its mortgage fraud.

Wells Fargo teamed up with its attorneys and spent last 4 years in Nevada courts defending its appraisal and mortgage fraud.

Wells Fargo and its attorneys knew it’s Category C Felony to make mortgage loan based on fraudulent appraisal.

Wells Fargo and its attorneys knew it’s Category C Felony to foreclose home based on fraudulent appraisal.

Wells Fargo chose to violate the law and chose to defraud us.

Hold Wells Fargo Accountable! Save American Dream! Restore banking integrity.

Please sign the Petition on our website Please help us to expose Wells Fargo's mortgage fraud.

Posted by: WellsFargoFraudVictim | November 11, 2010 4:14 PM | Report abuse

Foreclosure Gang Rape, Louisiana Style. . .

". . .Assuming from the title of this essay, a reader could rightfully not be inclined to expect this narrative to be easy on the sensibilities. In fact, despite countless foreclosure information, this is probably as somberly gripping as a narrative can get concerning mortgage and foreclosure.

Not in a sexual sense, but “rape” here synonymously describes the following things that were forced upon the victim: defilement, molestation, exploitation, humiliation, bigotry, betrayal, invasion, revilement, assault, depredation, torture, despoliation, stigmatization, maltreatment, denigration, ruin, pillage, plunder, ransack, spoliation, violation, impingement, racism.

This true story is not being shared for persons with settled viewpoints about people in foreclosure deserving whatever happens. It is the victim’s appeal and hope that people who read this story will be prompted to outrage, as well as prompted to circulate this story until change comes –and not merely for this one victim.

". . .so that the ravished victim might have an opportunity to begin a road to recovery, an opportunity to begin recompense, to cease from being wrongfully blamed (notwithstanding other things deserved), the victim has no other choice –and is running out of time! Moreover, it is imperative this story be told so that the guilty persons, who boastfully flaunt before the victim, will be brought to justice, as well as prevented from additional such acts. . ."

Posted by: lawgrace | November 12, 2010 5:17 AM | Report abuse

Michael grimes on now I'm pissed jpmorgan forclose fraud , president owner I'd fraud !I'd theft 1st degree .bank fraud with fraudulent activitys .

Posted by: Anonymous | November 16, 2010 4:52 PM | Report abuse

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