JPMorgan Chase and the Fed in Collusion: The National Mortgage Settlement Sham

Six years ago, in February 2012, JPM was fined $5.3 billion under the National Mortgage Settlement reached with Attorney General Eric Holder. It was one of those sweetheart deals that Holder cut over and over with the big banks — by imposing cost-of-doing-business fines, instead of criminal charges, in keeping with his “too big to jail” policy.

However, as financial muckraker David Dayen reports at The Nation, only $1.1 billion of that $5.3 billion total had to be paid in cash; “the other $4.2 billion was to come in the form of financial relief for homeowners in danger of losing their homes to foreclosure.”

Here’s the rest of the story: “JPMorgan moved to forgive the mortgages of tens of thousands of homeowners; the feds, in turn, credited these canceled loans against the penalties due under the 2012 and 2013 settlements. But here’s the rub: In many instances, JPMorgan was forgiving loans it no longer owned… it had sold the mortgages years earlier to 21 third-party investors.”

The dirty details are now coming to light in a federal lawsuit being heard in New York. Grab the popcorn…


Neil F Garfield

13 Responses

  1. Since March 21st/17 of the auctioned date till we’ve been kicked out of the house Oct. 13/17 by the sherriff! The “legal Shield” I’ve been paying them membership as many years as I remember the kept referring me from one lawyer to another non of them cooperating the last one Name was Mark Gallagher, in Folsom city, stole $4k his professionalism in the harassment! Was retained in July till we got kicked out in Nov, was no heads up no statement no confirmation he speaks or text sound like puzzle

  2. Jamie dimon is scum they know what they have done to us. If you are dealing with MERS, you are dealing with the devil. If you are dealing with a mortgage broker, you are dealing with the devil. If you buy a property, try to get the loan thru your bank and hopefully they will hold the note. Don’t cash out your house ever if you expect to keep the same roof you are paying for over your head. don’t even trust the agent that says she is working for you. you have to be the smart one in the transaction. all of us that have been thru this nitemare should be woke up. Look at real estate today, prices are insane. They have prices so high that you need a bank to get the loan, but I say save your money and wait till you can pay cash. Anybody dealing with those big banks are making deals with the devil. first time buyers should be well educated and the rest of us are educated. I pray for us all!

  3. Thanks for the link – that’s for the appeal as the judge dismissed the complaint Dec 2016. You couldn’t retrieve the denial? Its referenced in the appeal. The denial is based on technical failings of the relator for failing to try ADR etc.

  4. You are my new family of hope Neil, David Daren and all of you who contribute to this blog. Thank you. I will fight until I get my mortgage back. I’m still in my home. We have judicial foreclosure that requires a court judgement. The Illinois Supreme Court passed new rule 114 requiring banks to comply with all loss mitigation that applies to the mortgage, up to and including HAMP. I’m dug in and armed with the law in my foxhole.

  5. Dickie fittinya. I’m in the zombie club walking around in court since 2010. Two foreclosure filings, one summary judgement denied and banks still leading COURT with moldy rotting carrot on a stick with a fraud mod with $35k of fees and interest added to my mortgage that qualified for HAMP. They keep jacking up “their losses” to get to the pool of blood, the FDIC insurance if they last longer than me.
    There is no life. Only roaming dead bodies

  6. Reblogged this on Deadly Clear.

  7. Reblogged this on California freelance paralegal and commented:
    JPMorgan Chase along with Wells Fargo and the other big banks should be given an ultimatum. Clean up your act now and compensate the homeowners that you defrauded or you will lose your national banking charter permanently. The corporate death penalty that David Dayen was referring to.

  8. when do I get the $$ Wilbur Ross/AHMSI/Ocwen stole from me..its only $340k?

  9. Idk but I feel like a zombie walking around 5 years after indymac one west and our gov. Stole my home ,after half a century or more of our family ownership.we took our heloc , that nearly went up four times ,combined with loss of job poof the realtor who handled fraud closure with deutsche bank trust company she bought our home for half or more then the toxic mortgage or heloc we had .now she owns another home we pay rent 2000 month ? Can anyone say rise up nov fifth take to the streets with anonymous ,we have to do something I can’t do this half alive crud anymore!

  10. In California, the Program is called “Keep your Home California”, and the apparently 30 billion dollar fund is supposed to help distressed Homeowners. I think around 10,000 to 12,000 homeowners are being helped every year. Our family applied for the program and we were summarily rejected because we did not have a mortgage, we had a HELOC. The irony is we never missed a payment over the first 10 years, and then when the HELOC reset at year 11 the payment amount tripled and due to extreme medical issues we could not afford that high of a payment. We begged for a REHELOC where the interest only payment would be regenerated through a new REHELOC. No can do. Nothing could be done. Something could have and should have been done. Instead people who had paid off their homes and then taken out a HELOC were being punished, even though the HELOC was taken out four years before the Housing market crashed. We never expected to have our own equity reimbursed, but over the course of 11 years some of the interest rate charges could have been reimbursed.
    The sleazy part in all of this is it was Bank of America that was giving out HELOC’s to practically anyone, even those who had just purchased a home and were cashing out. We were as far from that group as possible as it took a couple of decades to pay off the home. I began protesting this ridiculous program that was barely helping anyone and was further informed that the Banks can choose to simply reject an approved Keep your Home California loan, no excuse needed!
    This huge fund sits in California presumably gathering interest, maybe it’s being used to invest in the stock market, maybe it’s a back up plan for the general fund and the 1 trillion dollars in future pension promise obligations. I do nowhere it did not go, and we lost possibly 100,000 thousand dollars in ADDITIONAL equity above and beyond what we had borrowed because BOA did NOTHING to help us but watch us circle the drain and say sorry.

  11. I want my house back or J.P. Morgan can pay me for damages!

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