Borrowers who obtained an adjustable rate mortgage (ARM) from JP Morgan Chase Bank or Chase Home Finance may have legal recourse to seek compensation. According to a California Chase ARM class action lawsuit, the mortgage banks charged borrowers a higher Initial Interest Rate than what should have been applied under the terms of their loan. The current Chase ARM class action lawsuit covers California residents only, but those residing in other states can still take legal action if Chase improperly set their interest rates.
If you entered into an ARM with JPMorgan Chase Bank or Chase Home Finance prior to April 2006, you may be able to seek compensation for abuse of the interest rate charged on your home loan.
Chase Adjustable Rate Mortgage
The claims in the Chase ARM class action lawsuit arise from the disclosure forms and mortgage notes the lender provided to borrowers in connection with their adjustable rate mortgages. Those documents informed the borrowers that the “Initial Interest Rate” – the rate to be charged before any adjustments were made in subsequent time periods – would be the sum of a specified “Index” plus a set “Margin” or, possibly, a rate less than that sum.
Borrowers were informed in these documents that “Your interest rate will be based on the weekly average yield on United States Treasury securities adjusted to a constant maturity of 1 year (the ‘Index’) plus an amount called a ‘Margin.’” Later in the document, in a section titled "How Your Interest Rate Can Change," the disclosures stated that "Your Initial Interest Rate may be discounted and will not be tied to the Index." Notwithstanding these statements, the bank allegedly charged the borrowers an Initial Interest Rate that was higher than the sum of the Index and Margin.
Chase Arm Class Action Lawsuit
Did you enter an adjustable rate mortgage with JP Morgan Chase Bank or Chase Home Finance before April 2006? If so, you may be able to participate in a potential Chase ARM class action lawsuit to seek compensation for abuse of the rate charged on your home loan.