JPMorgan Chase, one of the largest bank and third of the biggest U.S. mortgage servicer, must show foreclosures complying with law, and if it can’t, must stop the practice, California Attorney General Jerry Brown said.
California is not one of the 23 states Ally Financial Inc.’s GMAC Mortgage units, and JPMorgan Chase suspended pending foreclosure cases. On Sept. 24 Brown investigates ordered Ally Financial to suspend foreclosures in his state.
Additionally, Illinois AG Lisa Madigan has demanded to set a meeting with JPMorgan Chase and Ally Financial. Arizona congresswoman has called for a 90-day moratorium. The Connecticut AG Richard Blumenthal has gone a step further and demanded a 60-day foreclosure moratorium for all servicers. Both Illinois and Connecticut were included in the initial 23.
“I’m taking this action to further protect California homeowners on the brink of foreclosure. JP Morgan Chase, like GMAC/Ally Financial, has admitted that its review of key foreclosure documents was a ruse. I’m directing Chase to prove it is following the law before it continues foreclosures in California,” Brown said.
The California law prohibits lenders from recording notices of default on mortgages made between Jan. 1, 2003 and Dec. 31, 2007, unless, subject to limited exceptions, the lender contacts borrower for a possible loan modification.
The 23 that was included in the original suspensions are Connecticut, Delaware, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont , and Wisconsin.