Is Chase missing documentation on ALL WaMu loans?

Just received this from a reader:

I talked with an insider at the FDIC and there’s STRONG indication that Chase does NOT have the original (paper) promissory notes and contracts to prove that it owns the $176 billion in loans that it bought from Washington Mutual for little more than 1% of the face value (they bought it for $1.88 billion and get to keep all our payments though they never loaned out that money originally and likely bought WaMu with our taxpayer TARP funds!).

The FDIC swooped in to minimize its own insurance costs…they shut down WaMu in ONE day and sold it to Chase for even cheaper than Chase’s cheapest offer to WaMu while WaMu was functioning. WaMu wasn’t allowed to receive bailout money, it was closed just 9 days before the TARP funds were given to Chase. As of nearly 2 years later, August 2010, Chase still hadn’t “completed” its purchase of WaMu yet has been collecting and enforcing those $176 billion in loans.

The FDIC also never SPECIFICALLY assigned any of the loan inventory to Chase. This means Chase has no specific proof that your loan belongs to it. Chase doesn’t have the original paper note (it was likely shredded and they only kept digital copies) and it likely doesn’t have any ASSIGNMENT CONTRACT proving that it owns your loan either. Since the FDIC sells off different assets piecemeal to different buyers, Chase wants us to believe that Chase bought everything at once, but there is no specific proof since the individual loans were never separately assigned/sold/inventoried. Chase might be trying to retroactively fake that documentation now, and they might just get away with it.

Chase begins charging WaMu customers who had “free for life” checking accounts $10/month now starting Feb 8th, 2011.

LET’S DO A RUN ON THE BANK and take out all our deposits on February 6-7, 2011 to MAKE THE POINT that Chase can’t keep our business with these tactics.

WaMu had only 9% of its deposits removed before the FDIC shut it down in ONE day (September 25, 2008). What if we get everyone we know with a Chase account to withdraw our deposits at the same time? If it exceeds 9% of Chase’s deposits, let’s see what the FDIC does and call their bluff on whether or not they legitimately shut down WaMu in the first place if they don’t do it again for Chase!

Chase representatives at high levels are aware of fraud in the origination of the WaMu loans but continues to deny fraud through its fraud department (no ethical conflict of interest there, right?) to keep customers paying, even though they DON’T HAVE THE PAPER PROMISSORY NOTES OR ASSIGNMENT CONTRACTS to prove that they have standing to enforce these $176 billion in loans through the courts. They are counting on customers being too scared to stop paying and get sued.

How can we get the word out as quickly as possible regarding withdrawing all our money from Chase by Feb 6-7, 2011? With smaller deposits, Chase won’t be allowed to make exponential new loans (for each $1 we have on deposit with them they can borrow 7x-10x from the Federal Reserve to loan right back to us at higher rates than what they’re paying on our savings and CD accounts, so withdrawing our money will have 7x-10x the exponential effect on Chase’s future business.)

Can you help me tweet this? I don’t have the following that you do to make this happen in time. Thank you!

There are a number of other indications that Chase is having trouble proving ownership of loans, including

  1. A number of cases where it could not prove ownership and lost its foreclosure battle in court
  2. The sending of unsolicited loan modifications to customers who are not behind on their payments. This could be a thinly veiled attempt to get them to resign loan documents to re-establish the document chain.
  3. The explicit attempts to get customers to resign mortgage paperwork.

Given all these other indications we see that Chase is having trouble proving ownership of loans, it seems entirely plausible that Chase might have such a big hole in their loan documentation.


  • By Rose in CT, January 22, 2011 @ 11:58 am

    “The sending of unsolicited loan modifications to customers who are not behind on their payments. This could be a thinly veiled attempt to get them to resign loan documents to re-establish the document chain”

    I HAVE NEVER BEEN LATE ON A MORTGAGE PAYMENT. I never asked for a Modification and I never signed any papers as such but Chase put me into a modification program anyway. I am asking for the documents with my signature and they can not produce them. Now they are saying I need to sue them to get the documents that they insisted I signed. How long is our justice system going to let these criminals get away with this?
    I do have a case pending with the OCC but I have little faith the OCC or my representatives in congress will do anything.

    Rose in CT

  • By Obamanista, January 23, 2011 @ 10:59 pm
    Please check out my story.

  • By Obamanista, January 23, 2011 @ 11:00 pm

    Please see my story:

  • By Steven, April 6, 2011 @ 9:08 pm

    I closed my Chase short sale last year (Wamu loan). Chase recovery sent to collection agency. They tried to collect but my lawyer request proof of debt. They sent it back to Chase or sold it to another collection agency. Lawyer is doing same with them. Never got a letter from either collection agency, just phone calls. Now I sent Chase a Qualified Written Request asking to produce note. Do you think they have nothing and that is why they keep backing off? Thanks.

  • By admin, April 6, 2011 @ 9:19 pm

    My information is very unscientific, but based on the stories we’ve come across, I’d say there is a good chance they can not produce the note. In cases where they can easily win, Chase has been very litigious, such as against credit card customers in New York. It is hard to imagine that they wouldn’t go after the remaining debt if they felt they had a strong case.

  • By FightinginNY, May 5, 2011 @ 2:08 pm

    I just had a Chase representative tell me that I had to send in a copy of my recorded mortgage or they wouldn’t process my HAMP request. I’m not about to hand them documents that they would just use to take my house! This company is something…

  • By Slawek, June 15, 2011 @ 11:14 am

    I would love to buy my loan “for little more than 1% of the face value”. I would even offer 3%! Where shall I make my offer?

  • By Kt, April 26, 2012 @ 3:00 pm

    Chase repossess my car by not cashing payment and for the past 2 years has been aggressively trying to take my home! They are fraudulent, I tried to modify my loan For almost 3 yrs. Now, keep getting denied.I ask for history of my account they can only retrieve back to 2009, where did the paperwork go from 2004 on. During the mod process they asked me for a t4506 over 50 times and repeatedly asked for paperwork over and over again. They say they never received then cut you off for modification.

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