Chase Clients Win Class Cert. In Mortgage Suit

Law360, New York (October 20, 2011, 1:54 PM EDT) -- Up to 28,000 borrowers who claim JPMorgan Chase Bank NA duped them into paying higher interest rates on their adjustable-rate mortgages can move forward as a class, but only on certain claims, a California federal judge ruled Wednesday.

The homeowners, who say misleading loan application forms hid ballooning interest payments, cannot try to collectively undo their mortgages, but can pursue any allegedly overpaid interest, U.S. District Judge John Kronstadt said.

The order formalizes a Sept. 22 preliminary ruling, and strikes the latest blow to classwide rescission...
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