Wells Fargo & Co. has filed a lawsuit against JPMorgan Chase & Co. to repurchase more than 800 soured mortgage loans that it oversees as trustee, Reuters reports. Wells Fargo alleged that J.P. Morgan’s EMC Mortgage unit refused its demands that EMC buy back the loans, part of the Bear Stearns Mortgage Funding Trust 2007-AR2. Wells Fargo claims EMC and its subsidiaries routinely approved mortgage loans despite “clear defects” in loan applications, including faulty appraisals and inflated borrower incomes. J.P. Morgan acquired Bear Stearns and its EMC unit in 2008.
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