Two Lawsuits Filed Against JP Morgan In Connection To Mortgage Foreclosures

Tyler Durden's picture

Two more lawsuits in the neverending saga fraudclosuregate, this time against JP Morgan.

Mortgage Foreclosure Investigations and Litigation. State and federal officials have announced investigations into the procedures followed by mortgage servicing companies and banks, including JPMorgan Chase & Co. and its affiliates, relating to foreclosures. The Firm is cooperating with these investigations. Two purported class action lawsuits have also been filed against Washington Mutual Bank and JPMorgan Chase & Co. in the United States District Court for the Northern District of Illinois, and against Chase Home Finance, LLC in California state court alleging common law fraud and misrepresentation, as well as violations of state consumer fraud statutes.

These investigations and actions follow the Firm’s decision in late September 2010 to commence a temporary suspension of obtaining mortgage foreclosure judgments in the states and territories that require a judicial foreclosure process. Subsequently, the Firm extended this temporary suspension to foreclosure sales in those states and territories that require a judicial foreclosure process, and to foreclosures and foreclosure sales in the majority of remaining states where a judicial process is not required, but where affidavits signed by Firm personnel may have been used as part of the foreclosure process. In mid-October, the Firm also temporarily suspended evictions in the states and territories in which it had suspended foreclosures and foreclosure sales, as well as in certain additional states in which an affidavit signed by Firm personnel may have been used in connection with eviction proceedings.

The Firm’s temporary suspension arose out of certain questions about affidavits of indebtedness prepared by local foreclosure counsel, signed by Firm employees, and filed or used in mortgage foreclosure proceedings in certain states. While, based on the Firm’s work to date, the Firm believes that the information in those affidavits of indebtedness about the fact of default and amount of indebtedness was materially accurate, in certain instances, the underlying review and verification of this information was performed by Firm personnel other than the affiants, or the affidavits may not have been properly notarized.

Zero Hedge will bring further details of these lawsuits as soon as we can track them down.

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SheepDog-One's picture

So then JPM will be up another couple % today then. <:P

erik's picture

has anyone calculated the loss potential due to both the silver manipulation issue and mortgage problems at JPM?  i know the mortgage costs could range in the billions, is the silver issue that big too?

Bananamerican's picture

One nice thing about TBTF is that these "one stop shops' for fraud and malfeasance  are now too big to fail... to attract lawsuits.


unum mountaineer's picture

Jamie email to Ben shalom (jon, blythe and timmay cced) :

message: warm dem printing press up hoe! and make a grill cheese..gawd help you if there is crust on it! rub my feet too.

JimboJammer's picture

Dear  Zerohedge...

JP  Morgan / Chase  /  Washington  Mutual  took  my  nice  house

in  Michigan ..  they  don't  really  have  the  note  to  this  house.

It  got  lost...  I  want  to  get  this  info  to  the  lawfirm ..

doomandbloom's picture

'..they stab it with their silvery knives...but they still can't kill the beast...'

Logans_Run's picture

It's "steely" not silvery, but I get your point! Don Henley for President!

Bananamerican's picture

"...must... resist...junking..."

DH must die

AngryVoter's picture

Glad to see this story is staying alive.  Hopefully as they dig into these cases the rest of the fraud will start to unravel as well.  Our economy will not recover if these crooks go unpunished.  TBTF my arse.

MachoMan's picture

I think it's funny that the banks think by going this route, they won't alienate all safe harbors (non judicial states)...  my guess is that we do away with non judicial foreclosures...  they're a total fucking mess anyway...  let alone when you throw mortgage fraud in the mix.

Logans_Run's picture

Unfortunately I think that the banks have already bought all the safe harbors they need. Not just at the Federal level but the state level as well. I personally think that we are fucked!

MachoMan's picture

As someone who practices at multiple levels of courts and who has daily interactions with judges "shooting the bull," I have no idea why so many people think our courts are awash with corruption...  I mean, literally, I have no idea...  how did fraudclosure gate get started in a florida court then?  Was it by devious design?  The reason most courts side with banks is that, generally speaking, liability on a promissory note is a slam dunk...  once the note is presented, practically speaking, the burden shifts to the other party to prove that he/she complied with its terms...  not saying anyone could do the case, but in the scope of things, it's like playing in the kiddie pool.  To the general public, it may seem that courts are in the pocket of banks, but in reality, the law is in the banks' favor...  simple as that.

The wild card is equity, but generally that's only invoked when no adequate remedy at law exists... 

Needless to say, unless unconstitutional or otherwise prohibited by the requirements of a separation of powers, the legislature can effectively neuter the judiciary.  Not saying that has been done, but should one be so inclined....

Problem Is's picture

Lord Dimon Addresses the Morts with the Standard Haughty Hubris:

Jamie Dimon: "Once I am installed as Secretary of the US Treasury..."

(Read: King of Finance)

Jamie Dimon: "... I shall abolish these suits and those who bring them as a nuisance... to Wall Street who owns you."

(Read: By Royal Decree)