Categorized | Finance and Mortgage

Wells Fargo Is Suing JPMorgan Chase Over Mortgage Loans

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Turmoil in the lending industry continues, as Wells Fargo has decided to sue JPMorgan Chase over more than eight hundred faulty mortgage loans. Wells Fargo is essentially demanding that Chase buy back the loans, as they believe that the loans should never have been approved, and were wrongfully sold to Wells Fargo in the first place.

Wells Fargo claims that there were many errors in the loan applications for the loans at the center of the lawsuit, which included highly inflated incomes for the borrowers, and flawed appraisals of the homes sold.

Many of the loans mentioned in the lawsuit have defaulted or foreclosed, thus costing Wells Fargo a substantial amount of money and manpower.

This is not the first time that Wells Fargo has sued another major lender this year. Just last month, the lender sued Bank of America regarding similar misrepresentations of mortgage loans. Wells Fargo has actually faced its own lawsuits over similar accusations.

More lawsuits are likely to emerge in the coming months, as lenders continue to point fingers as to who played the largest role in driving the United States real estate market to ruin. Furthermore, many of these major lending firms are under investigation, and as such, are looking for any possible way to divert the blame to a competitor.

When contacted about the current lawsuit against them on behalf of Wells Fargo, Chase officials declined to comment. It is highly unlikely that this case will be quickly settled, and it will probably be dragged out in court for some time.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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