Fraudclosure Smoking Gun? Liar Loans – JP Morgan Chase Loan Officer Lied on Borrowers Loan Applications to Make Numbers Work

Over and over again, this is how loans were “funded”. It was not the borrower that knew what “numbers” to plug into the loan application to get them to go through. It was the “loan officers” who “massaged the numbers to make it work.

Check out the documents below. They represent a borrower who showed concern for how the “loan officer” filled out the loan application and his response. I have pulled out the key parts due to the fact that it is somewhat difficult to read.

From the exchange…

Concerns from the borrower…

I have the  following concerns with the documents you sent me:

(1)  I do not make $34,000 per month nor anything close to this figure.  I am not
comfortable signing a document with a number I cannot document in  some form.

(2) There are repeated mentions that this is an adjustable rate mortgage. I  could find
no mention of  the frequency and amount of  the adjustment. I need this.

(3)  I do  not  wish to escrow insurance or  taxes. I will pay these.

(4) Apparently this is a $417,000 first and a $70,000 second. Where are the
documents for the second? What is the rate, how adjustable, what are the costs,
what IS  the term’? Why are we doing it this way?

I will need the information and answers requested before I can execute and return the

Response from the “Loan Officer”
My comments in italics…

I hope all is going well. This email is in response to the fax you had sent me. I’ll’ address each numbered concern:

1. This is a stated income deal. We had to state an amount that will be consistent through each deal. There are certain ratios that have to be met for income to debtThis is the figure that made the ratio fit. Since you have ample equity (from an inflated appraisal) and assets (that are now gone), along with great credit, (not anymore) this is where the luxury of a stated program comes in. It will not need to be documented. There is a form 4506 (request for tax transcript) in the package that needs to be signed, it is only to verify that you FILE your taxes (this is why so many thought they were submitting documented income).

2. Talks about the adjustable rate, see document below…

3. Talks about the escrows, again see document below…

4. The route we took to get the best absolute rate, (biggest commission) was keeping the first mortgage at a “conforming” or “conventional” amount. $417,000 is that maximum amount. Once it went to a “JUMBO” or “Non-Conforming loan amount, the rate jumps .25%. The second mortgage of $70,125 is to avoid mortgage insurance and allow you to put less down. The idea goal would be to pay that one down as use it for future purchases.

I appreciate all of your business (sucker) and want you to be as comfortable with me as possible. I know we’ve had some delays (manipulating the numbers) that seem a bit silly, but I guarantee that I’m laying the foundations fore these deals and several more. Once we get these first few initial closed, it’s smooth sailing from there on out. If you’d prefer a sit down sometime this week please let me know. I know you gentlemen are busy, but I want you to be confident AND comfortable with me.



Marc S. Bristol
Senior Loan Officer

JP Morgan Chase Home Mortgage

Well, as you can imagine, the home is now in foreclosure…

Moral to the story is the Loan Officers were the Liars in the Liar Loans. How else could of the game worked?

Documents below…



JP Morgan Chase Smoking Gun

15 Responses to “Fraudclosure Smoking Gun? Liar Loans – JP Morgan Chase Loan Officer Lied on Borrowers Loan Applications to Make Numbers Work”
  1. Steve says:

    I must of over looked this article. The same happen to me when some fake ass lawyer group told me my loan application was missing from my closing documents. I went back to the brokers to get the pages. The application showed only the brokers signature with my income doubled. Fricken liar had my taxes ! I went to my DA’s office and they said they would look into it. Nothing ever came of it. Too busy to help. The fake ass lawyer group being fakes turned out they were unemployed financial industry starting fake rescue schemes. Duh, I should have guessed. Who better to start up fake rescue companies and know what to look for then the perpetrators themselves.
    I tried to fight this in court at the Unlawful Detain er hearing. The judge didn’t care and I lost everything.

    A year later, I finally got the escrow closing agent to send me a copy of the loan app. There it is my signature and no brokers. Only mine is dated two weeks before his. I asked the escrow agent for my signed 4506-T? Why the two loan apps? Was I suppose to sign loan app. again at closing? Can I get a copy of all signed docs.? They wont respond to calls or emails anymore.

    If you had a small mortgage broker, look at your loan application showing it was done under a different software program. Computers! And these guys aren’t even link! These jerks either got you to sign in blank, or scanned, copy and paste then FAX it to the lender. it’s all over after that.

    There’s no help out there. These thieves have it wired. Best way to protect yourself is never buy house again.

  2. TheSmartOne says:

    Everyone posting here bought homes they couldn’t afford. You should know how much home you can buy and not rely on a lender to tell you. Shame on all of you.

    • Yea, and you are a Scumbag Wells Fargo Employee…

      Shouldn’t you be working instead of reading

      You also should mask your ip address when surfing at work…


      Referrer No referring link
      Host Name
      IP Address [Label IP Address]
      Country United States
      Region Iowa
      City Clive
      ISP Wells Fargo & Company
      Visit Length 18 hours 31 mins 57 secs

      Browser IE 6.0
      Operating System WinXP

    • see says:

      How do you know that I bought a house I could not afford? Simple answer you don’t. Sure after all the damage that banks cuased and the ecomony collapsed, sure millions of people could no longer afford their homes because of lose of income or unemployment caused by the greed of the banks. And “duh” the lender should know if you can afford the loan or not–are you serious. Shame on you for coming here and blaming hard working people who were left homeless because of greed. I guess you have to earn a living somehow.

  3. l vent says:

    Ronald Reagan famously said Trust but Verify. I think alot of us have found out that maybe we should have been verifying things alot more through the years. Max Keiser wasn’t kidding on one of last week’s shows when he called Jaimie Dimond of J.P. Morgan a pimp. Fox News reported an interesting comment Helen Thomas made recently she said something to the effect that the Zionist’s control Israel, Congress, Wall Street and Hollywood. The truth is slowly leaking out about alot of things many of us probably never knew about who owns this country and it is not us. Too bad for them they had to get greedy and try to own us too. We are not so easily bought so they tried to deceive us all. The truth will set us free from these tyrants who are communist facsist dictators who want to control the world by owning everything. They want to control everything through the currency. We all need to keep on out toes here people and stand united against this facsist regime.

  4. MB USA says:

    How do you trust anyone anymore for who they say they are? We get complacent I guess but we have to check and double check these peoples credentials that they can deliver a straight deal!

    • Licensed MB says:

      Be wary of what you read. This allegedly fraudulent loan officer may not have even been involved here. It is unfortunate that the public just goes on what they read by media sources without knowing the true facts. How do we even know if this EMAIL hasn’t been cut and pasted or is fraudulent itself. I would be hesitant to think this email states all the facts and who has leaked this information. Probably the client himself who has committed some level of fraud himself.

  5. Cindy says:

    I had a full doc loan, and it was falsified. The appraisal definitely was fraudulent, as it came in almost $100K more than the sales price, but just enough to make requirements for an 80/20 loan work–needful after the seller reneged on the sale of my existing home.

    When the servicer answered the QWR, it sent a copy of the loan application with obvious and UNAUTHORIZED changes that “tweaked” the DTI. This was unknown to me until now, and would have been totally unacceptable if I had known. It’s a felony to lie on a 1003 loan application. I would NEVER have agreed. I gave accurate and verifiable information, and I have no idea who or when it was changed. So it was not just the liar loans that were fudged. It was about money–NO ONE CARED as long as they got their cut!

  6. losing my home in florida says:

    i was getting a much lower loan my mortgage broker overstated my income by 600$ that was enough to approve me for my home. i found my application and it has telephone interview on it, but i sent pay check stubs. i also did not live in the area where i bought my home. i had to get a job first before imoved. i had send a letter to wells fargo stating i was commuting to my home 300 miles away.?? my mortgage broker new i was not. i had 3 kids in school and a husband. she new salaries inthis part of florida were lower. i was set up to fail 5 yrs ago. on top of that there was a straw buyer on one of my comps. they split a nice 20k patday on my dime. dont ya just luv it

  7. ikey zimmerman says:

    I think what you guys are doing is extremely dangerous. Our organization has found that previous mortgage bandits who were brokers during the boom years suddenly want to be saviors and report this data. This loan officer made an independent decision to mislead the borrower and did this without any authority of the bank. He did this to line his own pockets with wealth. He should be held accountable and prosecuted to the full extent of the law. But I do not believe you have the right to randomly libel the lending institution. I would be awfully curious to know what you were doing during those boom years. Odds are you were a mortgage bandit yourself doing the same things you are accusing Marc of doing. Now you want to be the one informing the public.

    • pamela spencer says:

      so ikey, this loan officer acted and approved all alone? I pray all those robots lose their homes and go to jail or be tried for treason. the banks have an agenda ask any realtor who tries to sell a “short sale”. i have found these guys to be extremely helpful.

      • see says:

        No this loan officer did not approve the loan. It was done by higher ups. The name of the game was to get through as many loans as possible with no concern about the risk. Money was the name of the game. The banks knew what was going on and as long as it was profitable, who cared?

    • Bill P. says:

      Same story with me. I took out a “stated income” loan in August of 2006. A year later, WAMU solicited me over the phone to increase my HELOC. I didn’t need to fill out any applications or submit financial info, or anything; just a hefty increase at a time when property values and income were plummeting on a national level. Upon receiving internal underwriting documents through subpoena, I discovered:

      1. My income increased to more than $35,000 per month.
      2. My property appraisal value increased by $80,000 since a year earlier (not to mention a 240% appreciation of the property in 26 months – purchased for 450k in 04, value in 06 = $1,100,000.)
      3. My Debt-to-Income ratio decreased from 35% down to 26% though my debt went up.
      4. WAMU stated internally that they “verified” the income. This would have been impossible!

      Bottom line – right after the HELOC increase, WAMU shut off my auto-pay feature on the account causing a “credit incident.” The ding on my credit, to which they failed to correct, caused an intentional spiralling effect of damages. Once my mortgage went 90-days past due, it was considered in “default” which triggered an insurance claim to be filed for the full amount (credit default swap, etc.) Then the goal was to foreclose and harvest the property. This was all intentional, and everyone knew it! Talk about “smoking guns!”

      Attorneys can reach me at

Leave a Reply