EMC Mortgage / JP Morgan-Chase Complaint

EMC Mortgage Extortion - Lane Roberts - Mortgage Servicer

- Lewisville Texas
Case in point: Loan # 0018068908

A home in Phoenix Arizona is for sale (short sale). The current mortgage holder is JP Morgan/ EMC Mortgage Corporation. There is a second lien holder. The price offered by a buyer was accepted by the Seller (subject to lender approval because each lender must approve the amounts to be paid to each lender). Both the first lien holder (JP Morgan "AKA EMC Mortgage Corp" – using Lane Roberts as Negotiator II) and the second lender (National City) accepted the terms and the payoff amounts (we have their letters) subject to the approval of the final HUD1. The final HUD is delivered showing the first getting a small amount more then they required and agreed upon. The second lender gets their agreed-upon amount also. Three days before the close of escrow the first mortgage holder’s representative, Lane Roberts, refuses to approve the sale because he wants half of the money the seller is paying to close the sale. The seller is a recently widowed mother of infants, who is providing $17,000 in cash from her husband’s life insurance and what money she could borrow from family and friends to complete the sale. She is doing the right thing here. If she just walked away from the property she would in essence be $17,000 ahead. Subsequent to agreeing to all of the terms and conditions of the offer, the JP Morgan / EMC Mortgage representative, Lane Roberts, has now stipulated that he wants half of the $17,000 or he will not approve the previously reviewed and accepted HUD. This would require:
• stealing money from the second mortgage holder;
• the buyer paying more;
• the Seller getting $8500 from the agents commissions;
• or the deal fails and the bank gets the property back.

The reason given for the extortion by the JP Morgan representative – “The second would get nothing anyway if there was a foreclosure.” In truth the 1st stands to get significantly less if there is a foreclosure as the property values have continued to fall since the early November offer was submitted. I cannot for the life of me understand how ethics and integrity have vanished from the banking industry to such a degree that this situation would be allowed to happen without the oversight of somebody higher in the JP Morgan / EMC Mortgage Corporation organization. Has everybody in this industry abdicated their responsibility?? How does this person, Lane Roberts, sleep at night??
Here is a case where the bank bail-out is supposed to help people in dire situations and yet this is how the banks treat them. It is disgusting to say the least. Moreover, it is extortion on a criminal level. When banking processes, and their staff, respond so shabbily in a situation as outlined above, it becomes clear that the bail-out is a fraud on the American people!! The banks have shifted their predatory lending practices to predatory sales practices. It is very apparent that the banking industry JP Morgan-Chase and EMC Mortgage Corporation, specifically Lane Roberts, Negotiator II, have lost their collective moral center. The banking industry created this problem through greed and poor oversight and we the tax payers have been forced to give them absolution in the form of a $700 billion dollar cash award with no accountability or controls. It sends the wrong message.
“Without a sense of responsibility or accountability - ethics and integrity do not exist.”

This article is also being forwarded to:

JP Morgan – Chase CEO – Jamie Dimon
EMC CEO – Joe Tucci
Call 12 for Action (Arizona)
3 On Your Side (Arizona)
MSNBC – Rachel Maddow
Senator Chris Dodd (D-CT),
Chairman of the Senate Committee on Banking, Housing, and Urban Affairs,

Senator Sherrod Brown Member Senate Committee on Banking, Housing, and Urban Affairs,
Felecia Retelling, Superintendent, Arizona Department of Financial Institutions

Dallas Texas Branch of the BBB

Federal Deposit and Insurance Corporation

Federal Trade Commission


We are seeking:
Disciplinary action against the employee if they acted outside their authority.
Disciplinary action against the employee's supervisor if they directed the employee to commit this extortion.
Disciplinary action against the employer if they put this policy in place as a company policy.
Sanctions against EMC Mortgage / JP Morgan-Chase for conspiring to commit extortion.
An apology letter from EMC Mortgage / JP Morgan-Chase, and Lane Roberts for their despicable behavior during this matter.
Return the extorted $8750 to National City Mortgage.


Read Next Complaint >>






Email Story   |   Comment on this Story



Read more consumer reviews from Complaint Catalog -> Banks/Credit Cards

Reader Comments:

Posted by pbartoletti on 02/11/2009
Here is the update as of today - February 11, 2009.
With all of the complaints that have been filed regarding this case, the one that was responded to was the complaint filed with the Dallas Texas BBB. Here is the response from the EMC Mortgage representative Tracey Messerly.
Link attached to view entire letter.

http://dallas.ebindr.com/complaint/view/91101714/c/3xvl5w?filename=Company Answer.pdf

Paraphrased details:
First they denied that I had a right to question their actions at all. They did indicate that they feel justified in changing, renegotiating or extorting any amount they wish from the second lien holder as they (second lien holder)
1 - Not entitled to anything but a minimum payment
2 - It is within their policy to do this therefore they are justified
3 - The amount paid will not exceed a reasonable amount as defined as $8500.

This is another typical statement from them that is off the dial of the BS meter.

So to all the other banks or investment groups out there that have second liens on any property where JP Morgan / Chase or EMC Mortgage is in first position, your assets are worth $8500 max per loan regardless of the principal of the note. My suggestion is to sell the note as soon as possible before Morgan / Chase or EMC Mortgage screw you into the ground. As it turns out it is their policy and they feel they are justified.

My response is next. Stay tuned.


So here is the lengths that JP Morgan / Chase will go to, to exact retribution for questioning their methods and tactics. This at a time when they are sitting in front of Congress to explain where the bail out money went.
Their CEO explains that they are doing everything to help mortgage holders and credit card holders.

If you have a credit card with JP Morgan / Chase you undoubtedly received a letter in early January stating that due to the fact that your credit card account is not profitable they are reneging on their agreement for the interest rate that you signed up for. This is after making 18 billion on credit card fees and interest in 2007. You were given the option of standing still and getting screwed or opting out. If you opt out your interest stayed the same and your account was closed. This happened even if you were never late, we not over the credit limit. The net result was damage to your credit score because closing a good credit account is as bad as being late as it lowers your credit score. There is the punishment. Even after the bail out they can turn and bite the hand that feeds them. If you are late now you will be hit with over limit fees and late charges. The next thing is the bills will be sent out late with less then 5 days to pay thereby guaranteeing additional fees to the credit card company. You wonder why we think the banking industry has lost its moral center. The greedy have come to rest on the money nest. I vote to not give them any more TARP money.


Posted by monicabehebek on 03/10/2010
Wow! We are currently dealing with a form of extortion with Chase! They refuse to put anything in writing so our Realtor has documented everything! Chase refused to modify our home loan, recommended us short sale it and now they are using extortion, telling us that they will not short sale our home unless we sign a $25,000 promissory note! We are filing BK-7 now! Shame on Chase! There "HAS" to be a lawsuit pending in this area! We are in the State Of California, a non-recourse state and this is their evil way of illegally coercing people in desperate times! I have found that many others have signed these promissory notes with other banks. Your statement that, "The banks have shifted their predatory lending practices to predatory sales practices" is right on!


Related stories:


Home    Consumer Resources    Browse Complaint Catalog       Terms & Conditions/Privacy Policy    Frequently Asked Questions

Copyright 2005-2010 Complaint.TV