A couple recently was able to get their foreclosure by WaMu then Chase dismissed and the court went a step further and found WaMu and Chase guilty of fraud.
At the heart of the issue was the fact that the bank was claiming it owned the loan rather than being the service of the loan which was owned by Fannie Mae. The loan was originated by another bank unrelated to WaMu or Chase so neither bank (WaMu, then Chase as the purchaser of WaMu’s assets) had the right to claim that they owned the loan.
The court found WaMu and Chase guilty of fraud because they knew as servicer and not owner of the loan, they were not entitled to foreclose; only Fannie Mae was entitled to foreclose.
11. The court find by clear and convincing evidence that WAMU, Chase, and Shapiro and Fishman committed fraud on this court.