Bloomberg | JPMorgan’s EMC Mortgage Sued Over Home Loan Documents

In the Aug. 31, 2010, letter to San Francisco-based Wells Fargo, Grais said he had investigated 1,317 of the loans held by the trust and determined that EMC appeared to have violated its representations with respect to 938 loans, according to the complaint.

JPMorgan’s EMC Mortgage Sued Over Home Loan Documents

JPMorgan Chase & Co.’s EMC Mortgage, facing homeowner lawsuits over foreclosures, was sued by the trustee of a mortgage portfolio for refusing to turn over documents detailing the quality of loans bought by the trust.

Wells Fargo & Co., the trustee, is seeking access to files for more than 2,000 underlying mortgages in the Bear Stearns Mortgage Funding Trust 2007-AR2, according to the complaint filed today in Delaware Chancery Court in Wilmington.

“The trustee has repeatedly requested that EMC provide access to the subject documents,” Wells Fargo said in the complaint. “EMC has played proverbial ‘rope a dope’ and otherwise continued to drag its feet, and has produced nothing.”

Claims of wrongdoing by banks and loan servicers triggered a 50-state investigation last year into whether hundreds of thousands of foreclosures were properly documented as the housing market collapsed. Lending practices have also pitted mortgage-bond investors against banks over misrepresentations such as overstatements of borrowers’ income and inflated appraisals.

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3 Responses to “Bloomberg | JPMorgan’s EMC Mortgage Sued Over Home Loan Documents”

    We are in the same situation. Wells Fargo is our servicer.

    After years of trying to apply $50,000 to our arrears with no response, they are now auctioning our home off in less than a month. Wells Fargo is the loan servicer.

    I would like to know the outcome of your situation, Lit Grant.

    Am I doomed?

  2. Mark says:

    I have all of my docs including a forensic review of my EMC loan and there are so many “wrongs” in it. My place goes to foreclosure March 18th in Oregon and I am trying to save it. Can anyone help? My brother has lived there over 37 years and it’s just a small 20 acres place un in the mountains and he just wants to live out the rest of his life there and could if EMC woulkd lower the balance for a smaller payment.
    The loan 6 years ago was $220K and we have made over $60K in payments and the loan amount now is close to $250K.
    These guys are crooks. My brother lives there and I live in WA state. I never even got notified it was being sold and thought I was supposed to get a notice. Is there anyone out there that could help me out. Who would be a reputable lawyer that is already in a lawsuit against EMC?
    Thanx for listening!

  3. Lit Gant says:

    I personally have made repeated request to EMC Mortgage to provide documentation concerning Bear Stears Asset Backed Securities I Trust 2007-HE4 and my mortgage and promissory note. They have refused to answer a single letter to them. At issue with me is the fact the PSA specifically says all mortgages in the trust must be registered with MERS and the company making the loan, the original lender must be a member of MERS. My loan was not registered with MERS. The lender was not a member. In addition, my note was endorsed in blank from someone who is not named as the original lender. The mortgage does not qualify to be in the trust. The note does not have a valid endorsment. Then, because of this, MERS attempted to make an assignment of the mortgage and note into the trust in January 2009 nearly two years after the trust was closed. MERS cannot transfer any mortgage into the trust after it is closed. When I attempted to contact EMC to get information on my mortgage and note, they refused to respond. Instead, as the master servicer they instructed Ocwen, the contracted servicer to continue with the foreclosure. I searched the mortgage pool of this 2007-HE4 trust and there is no mortgage in it that names me, my Ocwen loan number is not there, my note date is not there. So, I doubt if my mortgage was ever in the trust. Because I challeged the plaintiff on this, a rono-judge in Hillsborough County scorned at me and ordered me to amend my answer and my affirmative defenses and strike this defense. I think the investors of 2007-HE4 have been ripped off by EMC and all parties to the creation of the Bear Stearns Trust 2007-HE4. I would be willing to be a test case for a class action against EMC by the investors or some other defendant. Win or lose, I would be willing to be the one to help rip this fraud open. If my mortgage was fraudulently used to snare investors into subprime mortgage backed investment, how many more in this trust are toxic and need to be put back? It is indeed about time some investors stood up against these big rip-off banks like BOA and Morgan Chase. Now, where are the investors mad at losing money in the 2007-HE4 trust?

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