home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.


Chase Sues Advanta

Chase said it sustained $67 million in damages as a result of Advanta's alleged actions

July 30, 2001

By SAM GARCIA


Advanta Corporation (NASDAQ: ADVNB) announced Friday that Chase Manhattan Mortgage Corporation , a subsidiary of J.P. Morgan Chase & Co. (NYSE: JPM), filed a Complaint against Advanta and certain of its subsidiaries relating to the sale of the mortgage business to Chase which closed effective February 28, 2001. In its press release, Advanta said that the Complaint was completely unexpected since Chase never engaged in a substantive discussion with Advanta about the issues it is raising in the lawsuit.

The lawsuit was filed in the U.S. District Court in Delaware.

Chase acquired the mortgage operations of Advanta earlier this year for a reported cash price in excess of $1 billion. A recent story in the interactive edition of the Wall Street Journal indicated that the purchase by Chase of the 1,800 employee mortgage operation included a $15.8 billion mortgage loan servicing and subservicing portfolio with over 200,000 customers.

A Reuters story indicated that in its lawsuit, Chase said that Advanta enjoyed a reputation as a top tier performer in the industry when, in reality, Advanta's actual performance would have placed it as a bottom tier performer. Because Advanta's mortgage business appeared more profitable than it actually was, (its) stock price was higher. Chase said it sustained $67 million in damages as a result of Advanta's alleged violation of federal securities laws and has charged Advanta and 12 affiliates with fraud, misrepresentation, and breach of contract.

In December, LendingIntelligence.com reported that Milton Riseman, former president of Advanta Mortgage, was awarded $5.96 million in damages in a federal age-discrimination lawsuit against its parent company. The jury in the U.S. District Court for the Eastern District of Pennsylvania found that Advanta violated the Age Discrimination in Employment Act when it retaliated against Riseman for filing an age-discrimination complaint with the Equal Opportunity Employment Commission in Sept. 1998. Advanta was also found to have breached its contract with Riseman and withheld wages.

Advanta says that it has not been served with the Chase complaint, although it is generally aware of the allegations which its attorneys are reviewing. Advanta claims that it has complied fully with its agreements and the applicable rules. Advanta does not expect this lawsuit to have any impact on its continuing business.


Sam Garcia has been in mortgage lending since 1980, and is publisher of MortgageDaily.com, MortgageChronicle.com, FraudBlogger.com and CloserBlog.com.

email: [email protected]


Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders