MBS Industry at Risk for Class-Action Lawsuits Due to Data Security Breaches
July 14, 2006
A lack of action by Congress and a patchwork of state consumer protection laws puts mortgage securitizers at-risk for class-action lawsuits, according to lawyers tracking security breach laws. As mortgage-backed securities data is passed among dealers, due diligence firms, servicers, trustees, investors and others, the various parties have specific obligations if there is any breach in data security. In addition to the federal Fair Credit Reporting Act and Gramm-Leach-Bliley Act, a growing number of states…