Roseville, California (PRWEB) November 21, 2011
In a suit recently filed against JP Morgan Chase, Plaintiffs represented by UFAN Legal Group have alleged that the bank and its subsidiaries willingly engaged in improper loan origination procedures to place borrowers in high cost loans. The suit discusses how money to be made from selling mortgages encouraged a rush to lend to anyone and everyone without regard to the ability to pay. UFAN alleges that borrowers were the unwitting victims in this scheme, which contributed in large part to the mortgage crisis of the late 2000s. UFAN’s lawsuit was filed in Superior Court in Contra Costa County on October 18, 2011 (case # C-11-02390).
The potential liability of JP Morgan Chase stemming from ownership of loans originated during the mortgage boom years, has been well publicized in the press. JP Morgan Chase famously purchased the assets of Washington Mutual in 2008 for the bargain basement price of $1.9 billion. Subsequent inquiries into Washington Mutual’s failure have since raised allegations that the bank’s policies encouraged placing borrowers into high-cost, variable rate mortgages that the borrowers could not afford. It has been alleged that WaMu intentionally misled borrowers and falsified information in order to originate as many loans as possible for sale on the secondary market.
According to media sources, JP Morgan Chase faces potential liability over those loans because it agreed to assume certain liabilities of WaMu (namely that related to servicing) at the time of the 2008 purchase.
JP Morgan Chase has also faced legal action for loans it acquired as part of its 2008 acquisition of EMC Mortgage, according to reports. That complaint, filed in Delaware Chancery Court (case # CA6861) alleges that EMC routinely approved mortgage loans despite "clear defects" in loan applications, including faulty appraisals and inflated borrower incomes. A review of the affected mortgages revealed that EMC breached warranties and representations on 89% of a sample of 948 mortgage loans.
While many lawsuits are brought by investors that were sold mortgage backed securities containing improperly originated loans, UFAN’s lawsuit is brought on behalf of borrowers allegedly injured by having been placed in these harmful loans. Court documents show that borrowers were baited into large and unnecessary loans based on intentionally high appraisals and falsified loan applications.
Read UFAN’s complaint here.
Complementary consultations available.
ABOUT THE UNITED FORECLOSURE ATTORNEY NETWORK
UFAN Legal Group, PC dba United Foreclosure Attorney Network (UFAN) is a Roseville, California-based law firm providing mortgage litigation and other debt related legal services. The dedicated attorneys and staff at UFAN work tirelessly to seek justice and fight for the rights of its clients. For more information call toll free 1-866-400-4242.
This release may constitute attorney advertisement. The information in this release and on the UFAN website (ufanlaw.com) is for general information purposes only. Nothing in this release or on the UFAN website should be taken as legal advice. Prior successes are no guarantee of future performance. Litigation is inherently uncertain and results in litigation are never assured.