On October 21, 2011, United States District Judge Richard G. Stearns of the United States District Court for the District of Massachusetts appointed the Mauriello Law Firm as a member of the Executive Committee of law firms representing Plaintiffs in a class action lawsuit against JP Morgan Chase Bank (“Chase”) and EMC Mortgage Corporation (“EMC”). The Plaintiffs are mortgage holders from around the country, including California. Click HERE for a copy of Judge Stearns’ Order. Plaintiffs in the consolidated action shall be filing a consolidated complaint in the near future.
The lawsuit alleges that Chase and EMC committed loan fraud in connection with mortgage loan modifications, including: a) repeatedly failing to grant loan modifications as promised, misrepresenting the requirements for achieving permanent loan modifications, and misrepresenting the status of loan modification applications; b) obtaining interim debtor payments as a condition for promised (but illusory) permanent loan modifications; c) erecting obstacles in the loan modification process with the intent of obstructing, delaying, or preventing permanent loan modifications; d) misrepresenting amounts due and other terms of loans being serviced; and e) improperly recording notices of default and prosecuted unlawful foreclosure actions.
The lawsuit alleges that Chase and EMC avoided the need to initiate and conclude multiple foreclosures actions, thus conserving resources and avoiding liquidation of excess and over-valued real estate inventory. Defendants artificially bolstered their financial statements and minimized their reporting of defaulted and distressed loans.
The Mauriello Law Firm previously had filed a class action case in Federal Court in California, which was consolidated in Massachusetts with numerous other class action cases against Chase from around the country. Click HERE for a copy of the complaint in the Mauriello Law Firm’s case filed in California. Before the case was transferred to Massachusetts, Chase and EMC filed a motion to dismiss Plaintiffs’ claims, which the Federal Court in California denied. Click HERE for a copy of the order denying Chase’s motion to dismiss.
If you have suffered from or have knowledge of deceptive or unfair loan modification or servicing practices by Chase or EMC, please contact the Mauriello Law Firm.