'Confusing' Bear Stearns Mortgages Violated Law: Suit

Law360, New York (July 23, 2008, 12:00 AM EDT) -- A California woman dissatisfied with a mortgage secured from Bear Stearns Cos. Inc. has sued the collapsed investment bank, alleging that its residential mortgage division violated numerous state and federal laws intended to protect loan consumers.

The suit, filed Tuesday in the U.S. District Court for the Eastern District of California, claims that Bear Stearns “provided a loan product so complex that no reasonable person could understand the terms, thereby creating an unfair business practice and breach of fiduciary duty.”

“Together, all of the defendants’ created...
To view the full article, register now.