Bloomberg News

JPMorgan Bid to Dismiss Mortgage Claims Denied by Boston

July 30, 2012

JP Morgan Chase & Co. (JPM:US)’s attempt to dismiss claims in a lawsuit over its mortgage modification program was rejected by a federal judge in Boston.

U.S. District Judge Richard Stearns turned down JPMorgan’s request to have some claims dismissed for lack of jurisdiction and failure to state a claim, according to a filing July 27 in Boston.

The litigation consolidates lawsuits brought by homeowners in more than a dozen states that claim JPMorgan made “false and misleading promises” about modifications to their mortgages. The homeowners also claim the bank foreclosed on some homes despite promises they could stay in them while new payment terms were being negotiated.

JPMorgan agreed to participate in the U.S. Treasury’s Home Affordable Modification Program in 2009. According to court papers, banks were required to suspend foreclosure proceedings during the modification process.

“We strive to comply with all HAMP guidelines,” Amy Bonitatibus, a spokeswoman for New York-based JPMorgan, said in an e-mail. “With regard to the motion to dismiss, we don’t comment on pending litigation.”

The case is In re: JP Morgan Chase Mortgage Modification Litigation, 11-md-02290, U.S. District Court, District of Massachusetts (Boston).

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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Companies Mentioned

  • JPM
    (JPMorgan Chase & Co)
    • $58.02 USD
    • -0.89
    • -1.53%
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