San Francisco-based Wells, serving as the trustee for investors in the loan, said JPMorgan originated the mortgage loan for New York-based real estate development firm Chetrit Group in 2019 “based on financial information that both JPM and the Chetrits knew to be false and dramatically inflated,” according to the lawsuit, filed Monday in U.S. District Court for the Southern District of New York.
New York City-based JPMorgan quickly offloaded risk to the trust, “taking home millions of dollars of fees in the process,” Wells said in its complaint. “The value of the Properties backing the Mortgage Loan then collapsed - leaving the Trust with tens of millions of dollars in losses.”
(souce:bankingdive)
