According to a complaint filed in a federal RICO class action, Wells Fargo Bank and JPMorgan Chase charge homebuyers who go into default inflated fees and interest rates. Lead plaintiff Latara Bias claims the defendants, including Chase Home Finance, service almost 20 million mortgage loans, approximately 25 percent of the home loans made in the United States.
The class claims the defendants use an automated mortgage loan management system, and subsidiaries, to “fraudulently conceal their unlawful assessment of improperly marked-up or unnecessary fees for default-related services, cheating borrowers who can least afford it.” Continue reading “Wells Fargo Bank and JPMorgan Chase face RICO class action”