Borrowers Ask 9th Circ. To Revive JPMorgan Loan Fraud Suit

Law360, New York (March 28, 2012, 4:10 PM EDT) -- Mortgage borrowers of JPMorgan Chase NA asked the Ninth Circuit on Monday to overturn a decision dismissing a class action over ballooning monthly payments, arguing the bank broke state law by enforcing fraudulent loan agreements even though it did not commit the original fraud.

A district court held in November that any liability stemming from the adjustable rate mortgages that JPMorgan assumed from collapsed Washington Mutual in 2008 shifted to the Federal Deposit Insurance Corp. as part of the terms of the acquisition.

In appealing that...
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