JPMorgan Chase (JPM) created and recorded false documentation that showed the bank owned the mortgage of two California residents in order to foreclose on their home, the California Court of Appeals stated in a ruling Monday.

In 1998, Jan and Rosalind Kalicki obtained a mortgage loan from Headlands Mortgage Company for a home in San Marcos, California. Headlands originated the loan and Washington Mutual became the servicer of the loan. When WaMu was placed in receivership in 2008, Chase purchased “certain interests” of WaMu in the Kalicki’s loan, according to court documents.

The Kalickis sued WaMu in 2009, alleging that the bank wrongfully foreclosed on their property in 2008. In 2010, Chase was granted a motion to intervene because it had purchased WaMu’s assets and held the interests in the loan.

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