Chase Hiked Principals Beyond Legal Limit, Homeowners Say

Law360, New York (August 6, 2012, 5:50 PM EDT) -- Two Texas homeowners on Thursday hit JPMorgan Chase Bank NA with a proposed federal class action, alleging the banking giant violated state law when it modified home equity loans for consumers facing foreclosure by increasing loan balances to impermissible levels.

Putative lead plaintiff William J. Cusick claims that in many cases, JPMorgan’s mortgage modification program runs afoul of the Texas Constitution by rolling delinquent interest, property tax and insurance payments into loan principal, creating an equity loan with a balance in excess of 80 percent of...
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