Trust Wants JPMorgan Unit To Buy Back Bad Mortgages

Law360, Wilmington (September 14, 2011, 8:57 PM EDT) -- A mortgage portfolio trustee sued EMC Mortgage Corp. in Delaware court on Wednesday, alleging the JPMorgan Chase & Co. affiliate had misrepresented the quality of some 800 loans and was bound by contract to buy them back.

EMC ignored obvious defects in the loan applications yet sold the residential mortgages to the trust with the understanding that they met minimum quality standards, according to a complaint lodged by Wells Fargo Bank NA as trustee of Bear Stearns Mortgage Funding Trust 2007-AR2.

Wells Fargo says an investigation...
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