Chase offers nodoc loans then blames Broker when they blow up

WaMu is a convenient whipping boy for Chase to blame the crappy part of their loan portfolio on, but it appears that WaMu wasn’t the only part of Chase’s loan portfolio that was intentionally originated as sub-prime, according to this report by a broker who is being sued by Chase after the loan blew up.

Bad loan mod advice

This great article outlines a lawsuit two homeowners have brought against Chase for the advice they were given to stop payments so they could be considered for a loan modification.  We all know what happened after that, they were then threatened with foreclosure repeatedly.  One point their attorney makes is that there is a huge disconnect between the departments of the bank that handle loan modifications and foreclosures – they just don’t work together.

Chase arbitration settlement

Looks like there is a pending settlement in a class action against Bank of America, Chase, and other banks related to their use and requirement of highly biased arbitration proceedings.  There is no monetary settlement;  the settlement involves the banks agreeing to stop requiring binding arbitration.

The devil is in the details

Here is another interesting case that outlines the importance of the details associated with a mortgage and how failure of the bank to pay close attention to all the details may give someone an edge in a foreclosure action.  In this particular case, two individuals obtained a first from WaMu in 1999 and then a second from another local bank.  The missing details were that both the deed and the loans mentioned only the property and not the mobile home that was on it.  As such, the mobile home was considered personal property and not part of the lien placed upon the real property, or simply the land, as unlike a non-mobile home, a mobile home is not considered part of the real property, because, well, its mobile.  🙂

The homeowners were eventually otherwise SOL because the state laws in this case allowed the banks to attach their personal property as well, but this simply serves as an example of how banks have not paid attention to the small details over the last decade or more.

Ponzi scheme?

Another lawsuit alleges that WaMu, and then Chase knew of and did nothing about a certificate of deposit ponzi scheme that was operated with their knowledge and consent.

Now that’s just mean

Some of the most interesting tidbits about how Chase does business often come from court cases, like this one.  In summary, Chase had a deal with a refund finance company to provide funds to finance tax refunds.  They apparently wanted to end the relationship so they not only said no to future business, but also refused to honor any checks that had already been written but not cashed.  That’s just mean!  Chase asked the court to deny the suit or alternately to move it to a more favorable venue.  They were denied on both counts.

Bond bid rigging scheme

Oops. JP Morgan Chase has been listed as a co-conspirator in a bond bid rigging scheme

Chase sued by Mexican businessman

JP Morgan Chase is being sued by a Mexican businessman for $500 million after he claims Chase injected itself into his deal to sell his business for $400 million to try and wring some fees out of the deal. Interesting the kind of trouble Chase is getting itself into these days.