JP Morgan Chase may have much larger loan liability than claimed

The SEC has been asking JP Morgan Chase for more information related to its reserves set aside for bad loans it sold to Fannie Mae and Freddie Mac, and other investors.  With hundreds of billions at stake here, JP Morgan Chase could be asked to buy back much more than its current reserve levels reflect.

Guy tries to pay mortgage in full, Chase refuses

If you can read through all the legal jargon, this is an interesting story.

It is hard to understand all the back story, but what is clear is that at some point, Robert Traversari wanted to write a check to pay his entire mortgage (some $150,000) off in full.  So he wrote Chase a personal check for the full amount.

Chase refused the payment saying that it was their policy that payments over $5,000 needed to be presented as a certified check.  They foreclosed or tried to foreclose and promptly got sued by Mr. Traversari.

The major discrepancy is that the mortgage was acquired by Chase from another bank and the original mortgage said nothing about payments over a certain amount needing to be presented in a certified check.

This has to make us wonder whether Chase really just wanted to take possession of the house and had no interest in following the rules.

I hereby nominate Chase for the asshole of the month club.

If Chase harasses you on the phone …

Some Chase customers have reported abusive tactics by Chase employees or by collections agencies hired by Chase to track down delinquent debt.  While the ability of a company like Chase to legitimately go after debt that it owed to it is not in question here, its tactics often are, and they can be abusive, as are the Chase policies, fees, and interest rates that often drive people to stop paying down their debt, because they can’t get ahead.

Well take notice Chase.  A jury recently awarded a man $1.5 million in punitive damages after a debt collector left harassing, abusive, and offensive messages on his voice mail.

It is always a good idea to document everything that happens in your discussions with Chase, including saving any phone messages they might have left for you.

JP Morgan Chase accused of wrong doing in Lehman lawsuit

According to this article in the Wall Street Journal, JP Morgan Chase and some of its top executives, including CEO Jamie Dimon, were responsible for siphoning money out of Lehman Brothers just before its collapse, used inside information to do this, and contributed to Lehman Brothers failure.

WaMu still getting raped by JP Morgan Chase

In the latest settlement agreement between JP Morgan Chase and WaMu’s former holding company (and the FDIC), Chase is backing away from its claim to tax refunds in exchange for a larger share of the WaMu assets.

Does anyone else think it is strange that Chase is laying claim to $6.4 billion in assets when they paid only $1.9 billion for all the banks assets in 2008?  Someone is getting screwed here and I think it is the WaMu shareholders and bondholders.

Class action trollers seeking Chase litigants

Apparently class action trollers are looking for Chase employees to join a class action suit against Chase for violation of wage and hour laws.

Chase sued for telling homeowners to stop making payments

Another lawsuit calling out Chase for bad behavior. This time related to the practice of telling homeowners to stop making mortgage payments so they will quality for a loan modification:

JPMorgan Chase instructed homeowners to stop making mortgage payments, as that was the only way to be considered for a loan modification, then repossessed their house when they followed the bank’s advice, a couple claims in Federal Court.

The process seems to go like this:

1. Chase recommends stopping payments to qualify for a loan modification
2. Chase  approves a trial modification.
3. Chase works in parallel on foreclosure actions
4. Chase denies permanent modification after an extended trial modification and then demands all missed payments in a lump sum or they will foreclose, or Chase skips this step and just forecloses.

Borrower can’t pay, so, demand the entire loan now?

Oh Chase, what did you expect would happen.  This lawsuit tells us the story of a man who borrowed $100,000 and eventually failed to make payments when due.  So, Chase demanded the entire loan amount paid in full immediately.  He if course did not comply and they sued him.

How can a person who can’t make their monthly payments pay and entire loan off.  Stupid.