If you had an Option Adjustable Rate Mortgage Loan or ARM that was bought by EMC Mortgage Corporation between August 28, 2003 and March 29, 2013, You May Be Entitled to Recover Money from the Bear Stearns EMC Option Adjustable Rate Mortgage ARM Loan Negative Amortization Class Action Settlement.
Bear Stearns Residential Mortgage Corporation, J.P. Morgan Securities LLC formerly known as Bear, Stearns & Co., Inc., EMC Mortgage Corporation (“EMC”), and JPMorgan Chase & Co. (“Defendants”) have reportedly agreed to a proposed settlement of a class action lawsuit against them in the United States District Court for the Central District of California (styled as Monaco v. Bear Stearns Residential Mortgage Corporation Case No. 2:09-cv-05438-SJO (JCx), alleging, among other things, that Defenants sold Option Adjustable Rate Mortgage Loans using Option ARM loan documents that misleadingly failed to disclose that if minimum monthly loan payment were made at the beginning of the term of the loan, the loan balance would increase resulting in a negative amortization, according to the Bear Stearns EMC Option Adjustable Rate Mortgage ARM Loan Negative Amortization class action settlement notice.
Bear Stearns EMC Option Adjustable Rate Mortgage ARM Loan Negative Amortization settlement class members reportedly include, unless otherwise excluded, all persons who obtained an Option ARM Loan secured by real property located in California, any time from 8/28/03 to 3/29/13 originated by Bear Stearns Residential Mortgage Corporation or one of 56 originators covered by the settlement, and whose Option ARM Loan was purchased or acquired by EMC on a flow basis and was not originated by a national bank or federal savings association, or a subsidiary of a national bank or federal savings association; and where the note has certain characteristics relating to the yearly interest rate provision (it is less than the index plus the margin, it “may” rather than “will” change, the “Initial Monthly Payment” is based upon the yearly rate of interest in ¶ 2 of the Note and does not have any statement that after the first Interest Rate Change Date, paying the amount listed as the “Initial Monthly Payment” “will” result in deferred interest or negative amortization). TILA subclass members reportedly include Class Members whose Option ARM Loan was originated on or after August 28, 2006 by Bear Stearns Residential Mortgage Corporation.
In addition to Bear Stearns Residential Mortgage Corporation, the following Option ARM Loan originators are reportedly covered by the settlement:
- American Home Equity Corporation
- Golden Empire Mortgage, Inc.
- Opes Advisors, Inc.
- American Sterling Bank
- Greenlight Financial Services
- Ownit Mortgage Solutions, Inc., d/b/a Oakmont Mortgage
- Artisan Mortgage LLC
- HCL Finance, Inc.
- Pacific Community Mortgage, Inc., d/b/a PCM, Inc.
- Axis-Biltmore Bank of Arizona
- Heritage Plaza Mortgage, Inc.
- Pacific Mutual Funding, Inc., d/b/a Pacific Residential
- BankFirst, d/b/a Marshall BankFirst Mortgage Group
- HMLNSUSA, a/k/a Home Loans USA
- Paramount Residential Mortgage Group, Inc.
- Barrington Capital Corporation
- Home Loan Specialists, Inc.
- Parkside Lending, LLC, f/k/a Atlas Mortgage Lending
- BM Real Estate Services, Inc.
- Horizon Direct, Inc., d/b/a Commitment Lending
- Prominent Mortgage Corp.
- Bottomline Mortgage, Inc.
- Mason McDuffie Mortgage Corporation
- Realty Mortgage Corporation
- Mega Capital Funding, Inc.
- Reunion Mortgage, Inc.
- C & G Financial Services, Inc., d/b/a Moneycorp
- Metrostate Financial & Real Estate Corporation
- RMR Financial, Inc., d/b/a Princeton Capital
- Central Pacific Mortgage Company
- Mortgage Capital Associates, Inc.
- Seabreeze Financial
- CMS Capital Group, Inc., d/b/a Clear Mortgage Solution
- Mortgage Capital Corporation of America
- Skyline Financial Corporation, d/b/a Skyline Funding
- Fairfield Financial Mortgage Group, Inc.
- Mortgage Corp. of America, Inc., d/b/a Zone Funding
- South Pacific Financial Corporation
- First Fidelity Financial, Inc.
- Nationsfirst Lending, Inc.
- The Cal Bay Mortgage Group
- First Guaranty Financial Corporation
- NBGI, Inc.
- The Lending Company, Inc.
- First Mortgage Corporation, d/b/a National Lending
- Neighbors Financial Corporation
- Transnational Financial Network, Inc., d/b/a Alt Funding
- Firstline Mortgage, Inc., d/b/a Firstline Funding, Inc.
- Nevis Funding Corporation
- Uniwest Mortgage Corporation
- Flexpoint Funding Corporation
- NV Mortgage, Inc., d/b/a Soma Financial
- Valley Vista Mortgage, Inc.
- Gateway Business Bank, d/b/a Mission Hills Mortgage Bank
- Oaktree Funding Corp.
- Westlend Financing, Inc., d/b/a American Capital Fund
Under the Bear Stearns EMC Option Adjustable Rate Mortgage ARM Loan Negative Amortization Class Action Lawsuit Settlement, Bear Stearns will reportedly pay $18.3 million into a Settlement Fund to pay class members, to pay class counsel’s attorneys fees and expenses, to pay the settlement administrator and to pay an incentive award to the class representatives. Class members do not have to file claims to get payment and the amount of the payments (estimated to be between $505 and $5,469) will depend on the original amount of the class members’ Option ARM Loan balance and the length of time payments were made on that loan.
For more info regarding the Bear Stearns EMC Option Adjustable Rate Mortgage ARM Loan Negative Amortization Class Action Lawsuit Settlement class members can write to Monaco v. Bear Stearns Residential Mortgage Corp. Settlement Administrator P.O. Box 43154 Providence, RI 02940-3154, call 1-855-330-5905 or visit the Monaco. v. The Bear Stearns Companies settlement website at www.optionarmclass.com
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