Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Morgan Chase Accused of Massive False Claims - CHECK your Chase (WAMU) Original Loan to See if you Qualify for Relief Under False Claims Act

courthousenews.com | June 26, 2014

COLUMBIA, S.C. (CN) - J.P. Morgan Chase Bank falsely claimed that it had forgiven thousands of consumer mortgage debts that the bank already had sold, to try to shirk its responsibility to a consumer-relief settlement with Uncle Sam, the United States and 19 states claim in a recently unsealed year-old case.

The federal government, 19 states and the District of Columbia sued J.P. Morgan in Federal Court under the False Claims Act on May 6, 2013, claiming the bank got credit without providing consumer relief.

The relator, Laurence Schneider, claims he bought thousands of mortgages from J.P. Morgan before the bank sent letters to those consumers, claiming that their debts had been forgiven.

The complaint cites a consent judgment entered against J.P. Morgan after the government's 2012 complaint against the banking industry for fraudulent and unfair mortgage practices "which cost consumers, the federal government, and states billions of dollars."

The banks settled in April 2012, and part of the terms of that settlement was J.P. Morgan had to dish out $4 billion in consumer relief in the form of loan forgiveness and refinancing.

According to the complaint, the bank gets credits toward its obligation by forgiving and modifying loans.

"Before the Consent Judgment was entered into, Chase, eager to get distressed assets off its books, sold a significant amount of its mortgage obligations to avoid the burden and bad publicity associated with the residential foreclosure process," the complaint states. "Between 2006 and 2013, Relator bought the rights to thousands of mortgages owned and serviced by Chase. Numerous borrowers with mortgages Chase had sold to the Relator received loan forgiveness letters from Chase."

The complaint adds: "Relator, through his contacts at Chase, has been made aware that on Sept. 30, 2012, approximately 30,000 debt forgiveness letters were sent to borrowers by Chase. On Dec. 13, 2012 another 10,000, and on Jan. 31, 2013 another 8,000 letters were sent. These letters represented to consumers that, pursuant to the terms of the national mortgage settlement agreement, they were discharged from their obligations to make further payments on the mortgage, which Chase stated it had forgiven."

The letters, according to the complaint, were robo-signed by the bank, and sent out to get credits under the terms of the consent judgment.
"However, Chase was not entitled to all of the credits, because Chase no longer owned many of the loans it forgave or forgave loans that were not eligible for relief," the complaint states.

Schneider and the government say the bank offered to buy back the mortgages at a discount or send retraction letters to consumers, but that "Chase has not submitted to the Government anything correcting Chase's erroneous claim for credit for forgiveness of loans that it did not own and, to this day, claims credit for the loans it forgave despite no longer owning such loans."

The complaint adds: "The defendants concealed their conduct and disseminated false and misleading statements to mortgage holders and the U.S. Government and the States which agreed to the Consent Judgment."

Schneider and the federal government are joined by California, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Massachusetts, Minnesota, Montana, Nevada, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Tennessee, Virginia and the District of Columbia.

The plaintiffs are represented by Richard Harpootlian, who could not be reached for comment Tuesday.


------------------------------------
Nancy Duffy McCarron, CBN 164780
Attorney, Real Estate Broker, BBB Arbitrator, CA Notary Public
Certified Forensic Loan Auditor, Property Manager

 

Back to Letters from the Editor 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

 

ALB Law Firm

 

Advocate Legal

 

The True News Network

 

Sutton Law Firm, P.L.L.C.

 

Rubenstein Business Law

 

Atighechi Law Group

 

Scunziano & Associates

 

Get Certified to Perform Mortgage Securitization Audits

 

CFLA Training Academy

 

Expert Witness Services

 

Cutting Edge Expert Securitization Reports

 

CFLA Credit Cards

 

Breaking News

 

Letters to the Editor

 

CFLA Weekly Newsletters

 

Code of Ethics

 

Testimonials

 

Instructional Videos

 

Job Opportunities

 

License Opportunities

 

MARS Rule

 

Product Samples

 

Resource Links

 

Servicer Information

 

Foreclosure Laws

 

REST Report

 

Quiet Title Packages from Licensed Attorneys

 

Advertise on CFLA

 

Advertising Space: Mortgage Securitization, Quiet Title

 

Certified Forensic Loan Auditors, LLC
13101 West Washington Blvd.
Suite 444
Los Angeles, CA 90066

Phone: 832-932-3951
Toll Free: 888-758-CFLA (2352)
Mobile Users: CLICK TO CALL
info@certifiedforensicloanauditors.com

   
 

CFLA IS NOT A LAW FIRM AND DOES NOT PROVIDE ANY LEGAL ADVICE. CFLA DOES NOT OFFER FORECLOSURE CONSULTING OR FORECLOSURE RELIEF
SERVICES. CFLA DOES NOT OFFER OR ASSIST WITH ANY LOAN MODIFICATION SERVICE. CFLA ALWAYS RECOMMENDS THAT CLIENTS RETAIN COMPETENT COUNSEL IN THEIR RESPECTIVE JURISDICTION. CFLA HAS A FREE PROGRAM TO REFER CFLA CLIENTS TO LAW FIRMS IN NEARLY EVERY STATE AND CFLA
DOES NOT CHARGE OR OBTAIN REFERRALS FEES FOR THESE SERVICES. SERVICES NOT OFFERED TO RESIDENTS OF THE STATE OF NEVADA.

 
Home About Us Privacy Policy Terms of Service Disclaimer SERVICES Careers Contact Us
 
COPYRIGHT © 2007-2016 Certified Forensic Loan Auditors ™ All rights reserved