Archive for the ‘Chase’ Category

Chase Mortage Modification Lawsuits

Chase Home Finance LLC and JPMorgan Chase, N.A. face a class action lawsuit because of suggested irregularities in their mortgage modification programs.  This was brought about by the U.S. District Court, in Southern District of California.

Mortgage holders who were having trouble making their monthly mortgage payments were able to have a trial run on Home Affordable Modification Program (HAMP) for three months and on successfully completing the trial make this permanent.

The lawsuit claims that mortgage holders were not offered permanent status after successfully completing the trial.  The borrowers were deprived by Chase of the opportunity to modify their mortgages.  Chase breached the contracts with their clients for their own monitory gain and was against the intentions of HAMP.

Chase Adjustable Rate Mortgage (ARM) Lawsuit

Individuals who obtained an adjustable rate mortgage (ARM) from Chase ( either JP Morgan Chase Bank or Chase Home Finance) before April 2006 are seeking compensation as part of a class action lawsuit.  This is happening only in California at the moment – though borrowers in other states can instigate legal action if Chase set their interest rate wrong.

The loan documents stated that the initial interest rate  would be the sum of a specified Index plus a set Margin or, a rate less than that sum.  The documents also stated  “Your interest rate will be based on the weekly average yield on United States Treasury securities adjusted to a constant maturity of 1 year (the ‘Index’) plus an amount called a ‘Margin.’”

Later in the document, the disclosures stated that “Your initial interest rate may be discounted and will not be tied to the Index.”   Thus the bank allegedly charged the borrowers an initial interest rate higher than the sum of the Index and Margin.


Bad Behavior has blocked 627 access attempts in the last 7 days.