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Judge approves $280 million JPMorgan settlement

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Mortgage Professional America | 06 May 2014, 04:42 AM Agree 0
Whoever is writing the checks for JPMorgan Chase better limber up his hand. A US district court judge has granted preliminary approval for the bank to shell out $280 million to settle claims that it misled investors in the purchase of billions of dollars in mortgage-backed securities
  • Charles Stidham | | 06 May 2014, 09:23 AM Agree 0
    Is 2008 the new 1941? Do we get to kick this dead horse over and over and over like it is fresh news? Pearl Harbor was actually important: 2006-2008 was nothing more than simple greed by the likes of Goldman Sachs, Chase, Countrywide, Lehman and Bear Sterns. They hired whiz kids from Ivy League schools to invent synthetic debt that was fueled by 500 fico losers. Let's start talking about less than 1% foreclosure rates, record profits for Fannie and Freddie and a .7% buyback ratio for all mortgages funded by a company like Franklin American Mortgage in 2013. Large mortgage lenders are raking in record profits the right way so please stop acting like the Chase settlement is news.
  • None | | 06 May 2014, 09:29 AM Agree 0
    Why is the settlement in favor of investors, why is the homeowners
    Singled our? The Homeowners are the ones that got the shady deals!
    They got foreclosed on, no house, no attorney willing to challenge banks,
    No monetary funds to the Homeowners!
    But the investors get to sue and make Millions,
    While the Homeowners get a slap in the face with a $500.00 check?
  • Wm Matz | | 06 May 2014, 05:57 PM Agree 0
    Borrowers are increasingly winning. but that does not help the millions who lost homes. The investors and m.i. companies are going after the big banks and investment banks for the manifold misrepresentations.

    The nuclear explosion will come if the IRS ever follows through on its stated plans to go after the REMIC violations, which trigger 100% penalties. While those would be against the investors, the investors will seek indemnification from the trustees, whose late acceptance of virtually 100% of the securitized mortgages triggered the penalties. The trillions in taxes and penalties would balance the budget. But the indemnification would break most of the major financial institutions. So it will likely be swept under the rug.
  • Fernando L. Diaz | | 06 May 2014, 08:01 PM Agree 0
    The home owners got the short end of the stick. The Banks got 10xthe mortgage amount when the original mortgage was underwritten, then the Investor Offshore Trust that the mortgage was sold to made money when it was bundled up and the original documents were shredded in order to get the Insurance as a unsecured assett and sold off to make the discount premium spread and pass off the debt into pieces scattered all over the World. Then got paid again by the insurance company after 90 days of the client defaulting on the mortgage this was PMI paid by the lender. Then the Banks forced the homeowners out of their homes without proper proof of ownership of the debt which is the Original Note. They will never, ever, be able to show any Original Note that was signed at the closing table. The next big Class Action Law suit coming at them is the RICO Act Law suit. This is round 2 of the fight. The bigger they are the harder they fall. To be continued....
  • David Percy | | 07 May 2014, 08:21 PM Agree 0
    Has everyone forgotten that many (if not a vast majority) of these [bad] mortgage mortgages were underwritten by a government approved and authorized underwriting system? I agree that the deals were a poor investment, but most of those bad mortgages were made at the urging of those in Congress who purported to be helping everyone who could pass the proverbial "mirror test" obtain a home with little or no investment of their own capital. I'm not a lover of the big banks, but methinks they got suckered along with the rest of us by the greedy fools in Congress who were attempting to buy votes with someone else's money.
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