Upcoming Classes

Search CFLA's Article Archive:

JPMorgan, Citi Units Sued by FDIC Over Colonial Sales

businessweek.comAugust 11, 2012

By Christie Smythe and Bob Van Voris

JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) were among the banks sued by the Federal Deposit Insurance Corp. over $388 million in securities sold to Colonial Bank.

The FDIC alleged that the banks misrepresented the quality of the loans underlying residential mortgage-backed securities that Colonial purchased, according to a complaint filed yesterday in federal court in Manhattan.

The misrepresentations included inaccurate loan-to-value ratios based on inflated property values, according to the filing. Also, many of the properties at issue had second mortgages that weren’t disclosed, the FDIC said.

“In many cases, the amount of the undisclosed additional liens was much greater than the owners’ ostensible equity, putting the owner ’under water’ on the day on which this securitization closed,” the FDIC said in the complaint, filed by attorneys David J. Grais, Mark B. Holton, Leanne M. Wilson and Maria Heifetz.

Colonial Bank, of Montgomery, Alabama, was closed by the Alabama State Banking Department on Aug. 14, 2009, and the FDIC was named as a receiver for the institution, according to the FDIC’s website.

Danielle Romero-Apsilos, a spokeswoman for New York-based Citigroup, declined to comment on the lawsuit. Jennifer Zuccarelli, a spokeswoman for New York-based JPMorgan, spokeswoman didn’t immediately return a call yesterday seeking comment on the complaint.

The case is Federal Deposit Insurance Corp. as receiver for Colonial Bank v. Chase Mortgage Finance Corp, 12-cv-06166, U.S. District Court, Southern District of New York (Manhattan).


Back to August 2012 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
spacer
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
 
BBB Logo

 

spacer
Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:





 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package