Brought to you by
KIRO Radio's Tom Kelly digs deep into the Puget Sound real estate market
Real Estate

Chase faces lawsuit for high default fees

JPMorgan Chase faces a lawsuit that alleges the bank imposed overly high or unnecessary fees on delinquent borrowers.

The banking giant tried to get the case dismissed, arguing to the courts that the claims were unjust, but a federal judge ruled the lawsuit should proceed.

Borrowers are accusing the bank of "imposing excessive or unnecessary fees to inflate profit, including on services performed by third party vendors, cheating thousands of already-strained borrowers out of millions of dollars," Reuters reported.

Among the fees in question range from $95 to $125 for "broker's price opinions." The plaintiffs, who reside in the Northwest, Tennessee and California claim that the BPOs cost $30 to produce and that according to Fannie Mae guidelines they should not cost more than $80.

Similar lawsuits over mortgage fees charged to delinquent borrowers are pending against Wells Fargo and Citigroup.

Top Stories

  • Bunker Hideout
    Investigation reveals bunker on wanted couple's Yelm property
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Mortgage Calculator
Enter Your Details & Click the Calculate Button
Loan Amount $
Annual Interest Rate %
Term of Loan Years
Number of Payments
Monthly Payment $
Brought to you by

This is not a commitment to lend. Terms subject to change without notice. Applicant must qualify to receive credits. A division of Pinnacle Capital Mortgage Corp. WA CL 81395, Equal Housing Lender, MLO 70765.
Listen to the show
Hear Real Estate Today on KIRO Radio
Join Tom Kelly every Sunday at 9am on KIRO Radio to talk Puget Sound real estate.

Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know a student who stands out in the classroom, school and community?
Help make their dreams come true by nominating them for a $1,000 scholarship and a chance to earn a $10,000 Grand Prize. Brought to you by KIRO Radio and Comprehensive Wealth Management.

Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.