Chase is one of the major banks that announced a suspension of its foreclosure efforts in the fall of 2010 amid revelations of industry-wide mortgage document fraud according to media reports at the time. In the rush to process hundreds of thousands of foreclosures, Chase allegedly employed people to supply the necessary signatures for the documents that allowed the foreclosures to go forward. This practice, common among the major banks, came to be known as "robo-signing" and has been the target of lawsuits ever since.
Despite supposedly having put a stop to these practices last year, Chase has continued to face allegations of wrongful foreclosure. The United Foreclosure Attorney Network has filed suit against JP Morgan Chase recently in Superior Court in Martinez (case # C-11-02390) alleging, among other things, that JP Morgan Chase has not followed proper endorsement and transfer procedure before it has attempted to enforce Plaintiffs' mortgage notes.
Court documents reveal that while the Bank has blamed episodes on clerical errors, the Court found "clear and convincing evidence" that Chase had engaged in a "knowing deception intended to prevent defendants from discovery essential to defending their claims."
Instances continue to occur that suggest such wrongful foreclosure practices are ongoing. An examination of more than 5000 mortgages assigned to Washington Mutual Trusts revealed that the assignments were actually signed by JP Morgan Chase employees in order to foreclose. The employees allegedly signed on behalf of mortgage companies, and purported to assign mortgages and notes to Washington Mutual investment trusts that had actually closed years earlier. Washington Mutual was purchased by JP Morgan Chase after the assignments were supposed to have taken place. The false assignments where then used to initiate foreclosure proceedings on behalf of JP Morgan Chase.