The revival of jumbo RMBS issuance will drive the rejuvenation of the private-label RMBS market, but is such a revival is likely to happen soon?
Read More »Morgan Stanley Settles with NCUA Over Faulty RMBS
The NCUA said it plans to continue to pursue litigation in federal courts against financial institutions based on the sale of faulty RMBS that caused five corporate credit unions to collapse.
Read More »BNY Mellon Posts Positive Financial Results in Q3 Despite RMBS Litigation Difficulties
The increase in net income during Q3 made it a positive quarter for the bank despite a lawsuit filed by the FDIC in August accusing the bank of breaching its duties as a bond trustee for $2 billion in residential mortgage-backed securities and despite having their own lawsuit against JPMorgan Chase over toxic RMBS dismissed.
Read More »Pending Settlements Over Faulty RMBS Sales Bring Total Recovered by NCUA to $2.2 Billion
NCUA sued Wachovia, which was acquired by Wells Fargo in 2008, in 2011. The Association filed suit against Barclays, the U.S. subsidiary of the British financial services firm, in 2012. Once the settlements are completed, NCUA will dismiss pending suits against both firms in federal district courts in California, New York and Kansas. As part of the settlement, neither Wachovia nor Barclays do not admit any fault.
Read More »Court Dismisses BNY Mellon’s $600 Million RMBS Suit Against JPMorgan Chase
BNY Mellon contended that the clock for the six-year statute of limitations began ticking when it made the repurchase demand. JPMorgan countered that the statute of limitations began running on the date the transaction closed, which was June 28, 2006—more than seven years before BNY Mellon filed the lawsuit.
Read More »Why Has the Private-Label RMBS Market Been Stagnant Since the Crisis?
The problem is not that investors are not willing to take the risk; Fannie Mae and Freddie Mac have transferred risk on $667 billion in unpaid principal balance (UPB) through a combined total of 22 Connecticut Avenue Series (CAS) and Structured Agency Credit Risk (STACR) transactions since 2013.
Read More »Former Nomura RMBS Traders Charged With Conspiracy and Fraud
According to the indictment, Shapiro, Gramins, and Peters conspired to defraud Nomura customers by fraudulently inflating the purchase price at which Nomura could buy an RBMS bond to induce customers to buy the bond at a higher price.
Read More »Moody’s Upgrades $1 Billion Worth of Fannie Mae and Freddie Mac RMBS
The note holders for these transactions are not entitled to receive cash from the mortgage loans in the reference pools, unlike typical RMBS transactions. Rather, the performance of the mortgage loans in the reference pool determines the timing and amount of principal and interest the GSEs are obligated to pay on the notes.
Read More »Goldman Sachs Agrees to $270 Million RMBS Settlement with Pension Funds
In August 2014, Goldman agreed to pay $3.15 billion to settle a lawsuit filed by the Federal Housing Finance Agency (FHFA) alleging that Goldman sold toxic RMBS to Fannie Mae and Freddie Mac, for which FHFA is the conservator.
Read More »JPMorgan Chase & MBS Investors Reach $388 Million Settlement in Lawsuit
JPMorgan Chase & Co agreed to pay $388 million to resolve a lawsuit by investors who claimed that the U.S. bank provided misleading information about the safety of $10 billion worth of residential mortgage-backed securities it sold before the financial crisis, according to multiple media reports.
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