JPMorgan Chase Sued For $95 Million Over Allegedly Misrepresenting Mortgage Loans

JPMorgan Chase & Co has been sued for $95 million by the trustee for securities marketed in 2005 by the former Bear Stearns Cos over alleged misrepresentations regarding the underlying mortgage loans.

US Bank NA wants to force JPMorgan to buy back the mortgage loans because of alleged breaches of representations and warranties regarding the Bear Stearns Asset Backed Securities Trust 2005-4, for which it serves as trustee.

It also said JPMorgan has refused to provide the underlying loan, as the trust documents require, so it can investigate the extent of the alleged breaches.

The unit of US Bancorp said it made its request at the direction of a majority certificate holder in the trust. US Bank also sued Bear Stearns and its former EMC Mortgage Corp unit. JPMorgan bought Bear Stearns in 2008.

A JPMorgan spokeswoman did not immediately respond to requests for comment.

The lawsuit was filed on Friday in the New York State Supreme Court in Manhattan, and publicly docketed on Tuesday.

It is one of many lawsuits seeking to hold banks responsible for investor losses over mortgages that may have been toxic, defective or improperly underwritten.

The case is Bear Stearns Asset Backed Securities Trust 2005-4 v. EMC Mortgage Corp et al, New York State Supreme Court, New York County, No. 650003/2012.

Copyright 2011 Thomson Reuters. Click for Restrictions.

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Comments

[Ban KKiller]

12:30 PM on 01/05/2012

"It also said JPMorgan has refused to provide the underlying loan, as the trust documents require, so it can investigate the extent of the alleged breaches".
Which begs the question, why not? Where are the original mortgage notes? Who DOES possess them? How did they acquire them? Who IS the beneficial owner and the holder in due course? These are questions the banks FEAR! Try call your bank and asking them! I dare you. IF you do call you will see how the banks are in big trouble over NO securities backing their "mortgage backed assets"!

[grkow]

05:54 PM on 01/04/2012

Virtually every large financial institution is a den of thieves. I realized this in 1987 while associated with the 15 largest bank in the nation.........and nothing has changed. Despite my 2 year effort to alert Florida regulators of their fraud (eventually settled in 1991 with a 20 million class action) every inept bureaucracy passed the buck and sat on their thumbs, rather than confront the 800lb gorilla.

[StopMakingSense2]

12:19 PM on 01/04/2012

Isn't this a frivolous law suit too conservatives? Make sure you include corporations not just the little people in your so called tort reform! Remember justice denied is better than delayed in your world..

[Terri Skau]

11:48 AM on 01/04/2012

I remember when JP bought out Bear Stearns. At a fire sale prices.

And the Saga of all of these banks and investment bankers keeps getting better everyday.

[tosc]

11:12 AM on 01/04/2012

banks miscalculated the publics dissent with their disrespectful, malipulative business practices at the expense of the taxpayers. Banks forgot the eternal motto of any successful business......the customer is KING! If you want longlasting success and support from your customers...you have to respect the customer's intelligence and sincerity!

[Debs Lockwood]

09:08 AM on 01/04/2012

They pay a fine, and admit to no mistakes, and its allowed. How is this Justice? If a regular Joe off the street did this, they would be fined, their lives ruined and sent to prison. The Government, the SEC , ALLOW this, its money in their pockets, and in return take money out of the tax payers to bail them out and we get stuck with the bill. Has ANYONE who were screwed over by the banks seen a dollar from these bail outs? Where is the money going? Oh and don't blame the Democratic, this all started with Bush , and went into the next two years of this presidents term. Stop the blame game and bait and switch games, these people need to be in Jail, like every other citizen in this country would of been.

[AZreb]

08:07 AM on 01/04/2012

Where is the Department of Justice of the United States of America in these suits against the banksters? Why is it left to the attorneys general of the individual states and other entities to go after the fraud, the robo-signing, the illegal foreclosures?

[Buffyspeaks]

07:16 AM on 01/04/2012

BOYCOTT THE GANGSTERS CONTROLLING THE THE "CHASE BANK" IF YOU LOVE AMERICAN CAPITALISM - "CHASE MAFIA BANK" IS TRULY EVIL!

[Twohairydogs]

07:04 AM on 01/04/2012

These people think there are no controls upon them and can only see $$$. Chase tried to "bait and switch" me when I was in the process of refinancing my mortgage. Made me so mad, I switched it to a credit union.

[frank1946]

06:23 AM on 01/04/2012

Bankers are so Smart and Honest..................Wow, look what I did, Mom !

No equity, no down, no market, no Brains or Fidelity, World Real Estate will
never go down again my Fellow Citizens ! Thanks Barney, Chris and Nancy.

Bill Clinton and Democrats sleep at night ?

Thanks to the local Board of Realtors and Too Big to Fail Banks.

So settle out of Court, move on Boys ! Call Ben and order more ink and paper.

[gdav520]

06:01 AM on 01/04/2012

This is just the tip of the biggest iceberg in financial fraud this country has ever seen! Chase is King in breaching contracts, lying, and fraud. Investors also have been realizing the countless mortgage servicing laws Chase has been breaking causing home owners to lose their homes they have owned and been paying on for decades! Chase took but never applied three payments in a row on our home, added late fees for each month, sent us a notice of default, and demanded all the payments plus all the late fees again in full or they will foreclose. Despite faxing them our bank statements showing their withdrawals for each month, and countless phone conversations with them claiming they hadn't even herd from us and they never received any faxes or phone calls and sometimes could not even find our account saying they would work on it and call us back but never once did! Two years later they still have not found our money they took. This pillaging of our country is falling on deaf and blind regulators, and is getting worse yet Wall St. and Washington refuse to do anything about it and do their jobs! I plan to stay in my home, keep raising my children in it like we have been, and if Chase tries to take it from us they are in for a fight because we are not going anywhere! If they do show up at my home they better have my money in hand!

[Frog in a pot]

05:24 AM on 01/04/2012

Being honest in this economy will be your undoing.
You cant compete.

[rothomaha]

07:31 AM on 01/04/2012

True, because the people who have structured it and are running it are the prototypic crooks.

[Frog in a pot]

02:24 PM on 01/04/2012

And legalized criminality is rampant.People of means can get away with fraud that would put us in prison.

[Frog in a pot]

05:22 AM on 01/04/2012

We are living in a completely preditory economy now.
only the strong will survive.
the honest will perish.
The laws are against them.

[breakingpoint]

04:51 AM on 01/04/2012

Surrender America!
Banks Win

you can't beat the banks
silly Americans
accept your fate
keep voting for the politicians and the two parties the banks own

[AZreb]

08:10 AM on 01/04/2012

Yes - BOTH parties are bought and paid for - in this case, there is no "lesser of the two evils"! No wonder the so-called Justice Department is so eager to give these groups nothing more than a slap on the wrist - after all, the donations are far more important than justice!

[YoureSoShain]

01:37 AM on 01/04/2012

Is this the free market working?