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JP Morgan, BoA and Wells Fargo sued over 'fraudulent' mortgage IT system

Leo King | Feb. 7, 2012
JP Morgan Chase, Bank of America and Wells Fargo are being sued by the US Attorney General over an allegedly restrictive and inaccurate database that may have resulted in unfair foreclosures for many home buyers.

It calls for damages, if won, to be calculated according to all the fees and profits allegedly fraudulently collected, as well as for a $5,000 payment to the state for each instance of law breaking. The lawsuit also asks the judge for a court order to resolve any incorrect foreclosures as a result of MERS.

Meanwhile, the banks are looking to sign a $25 billion nationwide agreement with the US government, which could release them from further liability over unfair foreclosures. It remains unclear to what extent that agreement could be blocked by the lawsuit.

 

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