Advertise
Resources
Member, Beacon International Group, Ltd.
NEW YORK (Reuters)—JPMorgan Chase & Co. has been sued by Stichting Pensioenfonds ABP, a pension fund for public employees in the Netherlands, over residential mortgage-backed securities it purchased.
The fund bought the pools of home loans based on false and misleading statements, according to the lawsuit, filed Wednesday in New York State Supreme Court in Manhattan.
The mortgage loans backing the securities were worth much less than had been represented and were taken out by borrowers "who were much less creditworthy than had been represented," the lawsuit said.
The securities were collateralized against mortgages that originated or were acquired by JPMorgan Bank, as well as Bear Stearns' mortgage arm, EMC, and Washington Mutual Bank, among others, the lawsuit said. JPMorgan acquired Bear Stearns and Washington Mutual in 2008.
The loans went into default and delinquency at high rates, and they could not be sold at anywhere near the prices paid, causing losses on the investment, the lawsuit said.
A JPMorgan representative did not immediately return a call for comment.
The case is Stichting Pensioenfonds ABP vs. JPMorgan Chase & Co., 653383/2011, New York state Supreme Court (Manhattan).