J.P. Morgan Chase, Bank of America, Citigroup, Wells Fargo face myriad of foreclosure lawsuits
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.
Ariana Eunjung Cha
| November 9, 2010; 12:49 PM ET
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