The National Credit Union Administration, or NCAU, filed a lawsuit against JPMorgan Chase and Royal Bank of Scotland Group in order to recover billions lost on mortgage-backed securities.
The NCAU alleges that the two banks sold mortgage bonds with loans that didn’t meet underwriting criteria. At the time they were sold they received AAA ratings, but a percentage if these loans were destined to become delinquent or defaulted, according to the lawsuit.
The NCAU hopes to recover the loss of funds related to the collapse of four credit unions that purchased the securities. The two complaints filed in court today stated that JPMorgan and Royal Bank of Scotland sold bond packages, which contained untrue statements or omitted valuable information.
In a statement to Reuters, the NCAU said “These misrepresentations caused corporate credit unions to that bought the notes to believe the risk associated with the investment was minimal, when in fact it was substantial.”
Major mortgage providers have been closely scrutinized for their questionable practices, which led to the current housing crisis. Their paperwork and processing procedures have been linked to the rising number of homeowners who are facing, or are currently amidst foreclosure. For many, a foreclosure attorney may make it possible to avoid losing their homes.
Foreclosure lawyers can work with banks to rehabilitate mortgage loans.
A foreclosure attorney can also challenge a wrongful seizure and make it possible avoid foreclosure.
