Home > Uncategorized > BREAKING NEWS, CHASE FOLLOWS GMAC’S LEAD AND SUSPENDS FORECLOSURES!

BREAKING NEWS, CHASE FOLLOWS GMAC’S LEAD AND SUSPENDS FORECLOSURES!

JPMorgan Halts Some Foreclosures on Procedural Worries

Published: Wednesday, 29 Sep 2010 | 5:06 PM ET

By: Diana Olick
CNBC Real Estate Reporter

JPMorgan Chase has announced it will re-examine documents filed in current foreclosure cases.

The review could affect at least 56,000 foreclosures. JPMorgan Chase [JPM  38.41   -0.54  (-1.39%)   ] is the third largest mortgage servicer in the nation, with $1.35 trillion in business and a 12.6 percent market share, according to Inside Mortgage Finance.

“It has come to our attention that in some cases employees in our mortgage foreclosure operations may have signed affidavits about loan documents on the basis of file reviews done by other personnel—without the signer personally having reviewed those loan files,” says JPMorgan spokesman Tom Kelly.

In the meantime, the company has requested that the courts not enter judgments in pending matters until the review is complete, a process they say should take a couple weeks.

“We believe the accuracy of the factual loan information contained in the affidavits was not affected by whether or not the signer had personal knowledge of the precise details,” Kelly adds.

About 7.5 percent of total Chase servicing is either three months or more in default or in foreclosures, “which translates to about half a million borrowers either already in foreclosure or heading towards foreclosure,” says Guy Cecala, CEO and publisher of Inside Mortgage Finance.

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