Consumer complaint received 2017-04-09
Company: JPMORGAN CHASE & CO.
State: AZ
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Application, originator, mortgage broker

Complaint:
XXXX ( XXXX ), a company located in XXXX Ohio, provided a service to real estate investors to purchase, renovate and refinance properties where the investor took on the loan and XXXX was compensated based on the appraised value of the home at the time of refinance. XXXX and a local appraiser conspired to provide fraudulent appraisals to increase XXXX earning potential. XXXX, the loan originator, accepted and used one of these fraudulent appraisals in originating this loan my wife and I entered into in XX/XX/XXXX, and we have suffered significant damages as a result. XXXX and the appraiser were criminally charged in this illegal and fraudulent scheme, and both pled guilty to said charges in XX/XX/XXXX. The parties received prison time and probation for this pattern of corrupt activity. 

In XX/XX/XXXX Chase acquired/purchased this loan from XXXX immediately following the closing ( same day ). I submitted a claim with XXXX and after reviewing the details they refunded my loan settlement fees as they did not want to profit from corrupt activity. While this was helpful the majority of the damages on this transaction lies within the additional loan debt assumed and interest paid to Chase over the last 8+ years. 

I asked that Chase review the indictment, corrupt activity and fraudulent appraisal involving the above-referenced loan. Within the appraisal there is a fraudulent renovation invoice from XXXX, which was used to help inflate the appraisal. The original value based on this fraudulent appraisal was {$150000.00}. A retro-appraisal based on the XX/XX/XXXX loan origination date will value the home at approximately {$80000.00}. This is a difference of {$70000.00}. Given the loan amount was set to 75 % LTV based on the fraudulent appraisal this originated a mortgage much higher than it should have been. 

A detailed accounting of our damages associated with this matter currently totals {$76000.00} ( additional debt assumed and interest paid on additional debt based on fraudulent appraisal ) from the XX/XX/XXXX origination date through XX/XX/XXXX. I am seeking full reimbursement for such damages, plus any amounts by which they continue to accrue ( about {$220.00} a month, or the amount of interest we are now paying on the additional loan debt due to the fraudulent appraisal ). 

Chase continues to send us standard form letter responses that they can not and will not do anything about this matter. We even proposed a settlement which allocates all principal and interest payments paid to date toward the original amount borrowed plus a one time payment from us to make Chase whole on the original amount borrowed and they turned us away. This extremely fair proposal would have made Chase whole on the original amount borrowed but they would not profit from a loan that originated from fraud and a pattern of corrupt behavior. They seem to be OK with making a profit from fraudulent activity. 

As a consumer we find this behavior from a global financial institution unacceptable and unfair. 

Your help in this matter would be greatly appreciated. 
Thanks!

Company response to consumer: Closed with explanation