Business As Usual At Chase-Owned EMC Mortgage As Banksters Refuse Comment On Possible Violations Of 2008 Court Order In Conduct Towards AZ Homeowners

In Phoeniz, Arizona, KNXV-TV Channel 15 reports on the trouble local homeowners Jason and Katherine Miller have been getting from Chase-owned EMC Mortgage in trying to work out payment arrangements on their home mortgage after initially being granted a trial modification:

• We were ecstatic. We were happy. We (thought) this is the best thing that could happen to us,” said Jason. The deal allowed them to pay about $460 less per month. Then in about three months, EMC would decide if they could keep the lower interest rate. “We thought it was great; it was going to save us a lot of money,” said Jason.

• But, months went by without a decision. Then last September, 15 months after submitting their application, the family got a trustee sale notice in the mail. Their house was going to be sold at auction. The next day, they received dozens of notices. Jason told ABC15 he thought, “They have set us up to fail.”

• The ABC15 Investigators did some digging and found the Millers' mortgage company, EMC, is accused of doing the same thing to other homeowners across the country. In 2008, the Federal Trade Commission settled a lawsuit against EMC for $28 million, claiming the company violated Fair Debt Collection Practices, the Fair Credit Reporting Act and Truth in Lending Act.

• And last October, one month after the Millers received their foreclosure notice, the Texas Attorney General, where EMC is based, demanded the company, along with 29 others, suspend foreclosures until it could verify all transactions had legally correct documentation.

• The Millers immediately called EMC. They said the company told them they would have to repay all the money saved over the previous 15 months and bring the mortgage up to date. That would cost the Millers a total of $8,822.14. The Millers thought they could handle that until EMC said they would also have to pay $10,000 in fees. They would have to pay a total of $18,822.14 or lose the house.

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• The federal lawsuit specifically states EMC cannot collect fees that are not authorized. And the lawsuit states, the company can't give misleading information about the debt or services. [...] The ABC15 Investigators asked EMC for an on-camera interview. The company is now owned by Chase, which turned down our request. In an email, Chase would not address whether EMC violated the court order.

For the story, see Valley family fights back after loan modification fees pile up.