JPMorgan, EMC Mortgage sued for $95MPosted On: Jan. 3, 2012 12:00 AM CST
NEW YORK (Reuters)—JPMorgan Chase & Co. has been sued for $95 million by the trustee for securities marketed in 2005 by the former Bear Stearns Cos. over alleged misrepresentations regarding the underlying mortgage loans.
US Bank N.A. wants to force JPMorgan to buy back the mortgage loans because of alleged breaches of representations and warranties regarding the Bear Stearns Asset Backed Securities Trust 2005-4, for which it serves as trustee.
It also said JPMorgan has refused to provide the underlying loan, as the trust documents require, so it can investigate the extent of the alleged breaches.
The unit of US Bancorp said it made its request at the direction of a majority certificate holder in the trust. US Bank also sued Bear Stearns and its former EMC Mortgage Corp. unit. JPMorgan bought Bear Stearns in 2008.
A JPMorgan spokeswoman did not immediately respond to requests for comment.
The lawsuit was filed on Friday in the New York State Supreme Court in Manhattan, and publicly docketed on Tuesday. It is one of many lawsuits seeking to hold banks responsible for investor losses over mortgages that may have been toxic, defective or improperly underwritten.
The case is Bear Stearns Asset Backed Securities Trust 2005-4 vs. EMC Mortgage Corp. et al., New York State Supreme Court, New York County, No. 650003/2012.