JP Morgan Sues FDIC for WAMU Cash Over Disputed Mortgage Bonds

EDITOR’S NOTE: The dots are starting to get connected. Here JP Morgan who said they were the successor for everything that was WAMU turns out to be arguing that this didn’t actually happen and that some money is still left in the WAMU “estate.” The issue that is not raised is what else is in the WAMU estate? I content that there are numerous loans or claims to loans that were never transferred to anyone successfully and I think the FDIC and JPM both know that. Chase is trying to limit its exposure for bad bonds while at the same time claiming ownership or servicing rights for the underlying mortgages.

Which brings me to a central procedural point: if these cases are to be properly litigated such that the truth of the transaction(s) comes out, then it cannot be done on the rocket docket of foreclosures. It should be assigned to regular civil litigation or even better complex litigation because the issues cannot be addressed in the 5-10 minutes that are allowed on the rocket docket.

——————————————————————

  • JPMorgan (JPM) has sued the Federal Deposit Insurance Corp. for a portion of the $2.7B remaining in the FDIC receivership that liquidated Washington Mutual following the sale of its branches and deposits to JPMorgan for $1.88B during the financial crisis in 2008.
  • The lawsuit is the latest development in the dispute between JPMorgan and the FDIC over who should assume Washington Mutual’s legal liabilities, such as those related to the sale of problematic mortgage bonds.
  • Meanwhile, JPMorgan has been sued by the State of Mississippi for alleged misconduct while going after credit-card users for missed payments. The bank’s sins include pursuing consumers for money they didn’t owe, Mississippi said.
  • The state is the second to sue JPMorgan over the issue, the other being California, while 15 others are examining the matter. JPM is already in early settlement talks with 14 of them.

Read more at Seeking Alpha:
http://seekingalpha.com/currents/post/1470511?source=ipadportfolioapp_email

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10 Responses

  1. Boots,

    Especially because you can now amend. My case may have things you can dig your teeth in for a solid amendment.

  2. Boots,

    I recently won on appeal in district court. Write me. cbrightlife@aol.com

  3. Homeowner WINS a ‘Round … Pro Se Prevails in the Appellate

    Fermin Aniel v. Aurora Loan Services LLC (9th Cir. 2013)

    No. 10-17369

    D.C. No. 3:10-cv-01042-JSW

    MEMORANDUM

    Status: Non-Precedential

    Fermin and Erlinda Aniel appeal the dismissal with prejudice of their suit arising out of a nonjudicial foreclosure on their rental property.

    WE AFFIRM IN PART, REVERSE IN PART AND REMAND.

    1. We agree with the district court that the Aniels’ Pro Se complaint fails to state a claim for wrongful foreclosure. But as explained below, the Aniels should have been provided an opportunity to amend this claim because it is not “absolutely clear” the deficiencies could not be remedied. Akhtar v. Mesa, 698 F.3d 1202, 1212 (9th Cir. 2012) (internal quotation marks omitted).

    The district court concluded that the Aniels did not – and could not – state a plausible claim for wrongful foreclosure because they failed to allege they could or would tender the amounts due and owing on their loan. Under California law, a borrower generally “must offer to pay the full amount of the debt for which the property was security” to set aside a trustee’s sale based upon irregularities in sale notice or procedure. Lona v. Citibank, N.A., 134 Cal. Rptr. 3d 622, 640 (Ct. App. 2011); see Arnolds Mgmt. Corp. v. Eischen, 205 Cal. Rptr. 15, 17 (Ct. App. 1984).

    Here, however, the Aniels argued that the substitution of trustee was fraudulent or forged, such that Quality Loan Servicing Corporation was never substituted as the trustee. If Quality was not properly substituted as trustee, it would have had no authority to effectuate a nonjudicial foreclosure sale, and the sale would be void, rather than voidable. See Dimock v. Emerald Props., LLC, 97 Cal. Rptr. 2d 255, 261-62 (Ct. App. 2000).

    Because tender is NOT required for an ALLEGEDLY VOID SALE, see Lona, 134 Cal. Rptr. 3d at 641, the district court abused its discretion when it dismissed the Aniels’ wrongful foreclosure claim with prejudice based on their inability to tender. on remand, THE ANIELS SHALL BE GIVEN THE OPPORTUNITY TO AMEND THIS CLAIM.1

    Each party shall bear its own costs of appeal.

    AFFIRMED IN PART, REVERSED IN PART AND REMANDED.

    FULL MEMORANDUM HERE:

    http://cdn.ca9.uscourts.gov/datastore/memoranda/2013/12/19/10-17369.pdf

  4. thanks christine. i am in contact with deontos about it. you what i am not good in computer i only know how to input but other than that i am not really good at computer. i will ask deontos to send it to neil’s website for you to read the memorandum.

  5. Boots, congratulations!

    Start the petition and I’ll make sure to sign it.

  6. hello!!!!!

    just got memorandum today from 9th circuit court aniel v. aurora appeal. the FDCPA was affirmed by the appeal court , but the wrongful foreclosure was remanded back to the district court, unfortunately it was unpublished opinion. i started this appeal as pro se, but the appeal court provided me a pro bono attorney to represent me in the argument which was held sept 10, 2013. when i spoke to my pro bono attorney the aurora lawyers called him that they want to settle the case before i proceed my lawsuit. my advised for all of you is just be patience and just read every detailed that NEIL publish in this blog, its really a big help understanding Neil’s advised. i filed my original case in 2010, the FDCPA was affirmed by the court because it was a rental property. the court did not really emphasize on FDCPA but in wrongful foreclosure it was. i asked my attorney if we could asked the court to publish the opinion. can you guys make a petition to publish this opinion its a big help on wrongful foreclosure case. thanks.

  7. BIG DECEMBER 2013 OCWEN SETTLEMENT FOR 2.1 BILLION

  8. When they start “eating each other”, it is good for the homeowner/litigant.

  9. WaMu at the time was worth $308 billion and JPMorgan allegedly purchase loans and other assets plus the deposit were a billion dollars, but JPM paid like $1.9 billion. This deal was struck because Shelia Bair did not want her insurance funds depleted by the failure of WaMu, and she would have had to borrow money from the Treasury which would have put that agency under the thumb of Geithner, which Bair could not stomach.

    If you look at how this deal went down, Bair did everything it looked like to prevent WaMu from selling itself to JPM before WaMu being seized! FIDC was in on this crime and now acts like they have no knowledge of this BS, as Bair runs around the country as if she was a hero!

    I been talking about this for a couple years as to the FDIC involvement!

  10. This is ridiculous .. JP Morgan and Chase claimed to own these notes and now that they got caught with there hands in the cookie jar ,and cry fowl. They wrote assignments for notes they never had as well , and used robo signers after the State AGs lawsuit, in 2011. Also, those Credit Card debts, TRUTH.. I paid off and closed my acct with First Premier in 2004, when wamu had it, suddenly I am getting charges and asking for a settlement . Its like this bank and Chase will haunt me forever. I had my VT AG go after them and they never responded back .

    Thanks again for all you do

    Deb

    Date: Thu, 19 Dec 2013 13:41:45 +0000 To: ttyson3@hotmail.com

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