Feds Sue 17 Banks

12433921097?profile=original
Washington, DC
 -- The Federal Housing Finance Agency (FHFA), as conservator for Fannie Mae and Freddie Mac (the GSEs), today filed lawsuits against 17 financial institutions, certain of their officers and various unaffiliated lead underwriters.  The suits allege violations of federal securities laws and common law in the sale of residential private-label mortgage-backed securities (PLS) to the Enterprises.  

 

There are 17 separate suits all relating to mortgage origination and mortgage-backed securitization. Being separate actions the allegations vary from case to case.  Here's a sampling of allegations:

  • Loan-to-Value Data Was Materially False
  • Owner Occupancy Data Was Materially False
  • The Originators of the Underlying Mortgage Loans Systematically Disregarded Their Underwriting Guidelines
  • Failure To Conduct Proper Due Diligence
  • Defendants Incentivized to Fund Risky Residential Mortgage Loans
  • Material Misrepresentations and Omissions in the Offering Materials
  • Fraud

Read more - including List of Lead Defendants.


E-mail me when people leave their comments –

You need to be a member of Short Sale Superstars to add comments!

Join Short Sale Superstars

Blog Topics by Tags

Monthly Archives

********************************** like buttons ************************