JPMorgan Chase has been accused of creating a “racketeering enterprise” whose purpose was to evade legal duties owed to investors and borrowers and to appropriately service federally regulated mortgage loans. JPMorgan Chase failed to provide documentations to investors that purchased loans from them (likely because all documentation was intentionally destroyed). The loans are void and uncollectable without the proper documentation. JPMorgan Chase also uses entities like Nationwide Title Clearing to create false title and paperwork necessary to foreclose (notes, assignments, reconveyances).
This blockbuster lawsuit illuminates the fact that JPMorgan Chase was selling thousands of loans it didn’t own including loans it had previously sold to other MBS trusts! Chase likely transferred these defective “loans” in order to avoid non-reimbursable advances and expenses.
JPMorgan Chase failed to service loans in a manner consistent with its legal obligations under: RESPA, TILA, FTC violations, the FDCPA, The Dodd Frank Wall Street Reform act, the Equal Credit Opportunity Act, the Fair Housing Act; and other applicable state and federal usury, consumer credit protection and privacy, predatory and abusive lending laws. It is likely that this is not an isolated incident, but JPMorgan Chase’s standard operating procedure.
It is alleged that JPMC failed to comply with the costly and time consuming legal obligations it faced under the Acts, and instead warehoused loans in a database of charged-off loans known as RCV1 and intentionally and recklessly sold these liabilities to unaware buyers such as the Plaintiffs.
For a copy of the lawsuit and additional information please go to LivingLies.
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