JPMorgan Loses Bid to Toss FHFA’s Mortgage Debt Lawsuit

JPMorgan Loses Bid to Toss FHFA’s Mortgage Debt Lawsuit

* Manhattan federal judge allows parts of lawsuit to proceed

* Case is one of many pending mortgage securities suits

* Ruling could have impact on other cases against banks

By Nate Raymond

NEW YORK, Nov 5 (Reuters) – JPMorgan Chase & Co lost a bid on Monday to dismiss a U.S. regulator’s lawsuit accusing the bank of misleading Fannie Mae and Freddie Mac in their purchase of billions of dollars worth of risky mortgage securities.

U.S. District Judge Denise Cote in Manhattan pared down parts of the lawsuit filed by the Federal Housing Finance Agency but allowed other allegations in the case to move forward.

The case is one of hundreds of lawsuits filed by investors and regulators related to mortgage-backed securities, which were at the center of the 2008 financial crisis when they sank in value during the housing downturn. Cote’s ruling could have an impact on other lawsuits by the FHFA against banks that packaged mortgages and sold them to investors as securities.

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Copy of the opinion below…




One Response to “JPMorgan Loses Bid to Toss FHFA’s Mortgage Debt Lawsuit”
  1. Louise says:

    Calling Ed Demarco, the guy who does not want to write down the mortgages. He is head of the FHFA. Interesting lawsuit that should kinda put this in front of DeMarco. I hope he has a mortgage, too.

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