Legal Actions

Grapevine: Ginnie President Nomination; UBS Settles

bivey@imfpubs.com — Thu, 07 Aug 2025 16:23:30 -0400

Joe Gormley nominated for Ginnie president; UBS pays DOJ to end lingering non-agency MBS obligations from Credit Suisse; Chase marketing non-agency MBS with reperforming loans.

IRS Qualifies REMIC Exchange Certificates as Stripped Bonds

jdohnert@imfpubs.com — Thu, 11 Jan 2024 16:22:26 -0500

A new IRS private letter ruling outlined a case where exchange bond certificates from a REMIC or grantor trust would be considered a stripped bond under tax policy.

New York Court Ruling Impacts MBS Clean-Up Call Practices

jdohnert@imfpubs.com — Thu, 12 Oct 2023 16:40:35 -0400

In a case that could have far-reaching effects on MBS investors, a New York judge ordered a servicer to recalculate clean-up call termination prices to include deferred payments.

RMBS Task Force Wraps Up After 11 Years

bivey@imfpubs.com — Thu, 17 Aug 2023 17:25:38 -0400

The Obama-era task force set up to investigate MBS fraud that contributed to the 2008 crisis has finished its job. Its efforts led the DOJ to collect $36 billion in penalties from banks, originators and rating agencies.

Court Ruling Could Impact Clean-Up Call Activity

jdohnert@imfpubs.com — Thu, 17 Aug 2023 17:22:43 -0400

A court ruling in California may have far-reaching consequences for the way non-agency MBS clean-up call prices are calculated.

Grapevine: MBS Sales From Failed Banks; Jumbo MBS Revived

bivey@imfpubs.com — Thu, 27 Apr 2023 14:49:59 -0400

AGNC CEO is comfortable with FDIC’s plans for sales of MBS held by failed banks; Morgan Stanley revives jumbo MBS; UBS prepares for legacy residential MBS action by DOJ; Chase offers RPLs in non-agency MBS.

Issuer Prevails in Legacy Non-Agency MBS Dispute

smanas@imfpubs.com — Thu, 09 Feb 2023 16:55:24 -0500

An appeals court has awarded ResCap Liquidation Trust nearly $22 million in damages and other expenses in its case against Primary Residential Mortgage.

Grapevine: Credit Suisse Tidies Up / GSEs Align on Social Disclosures

bivey@imfpubs.com — Thu, 20 Oct 2022 16:04:19 -0400

Credit Suisse settles legacy non-agency MBS lawsuit; Fannie and Freddie to publish aligned social disclosures for single-family MBS; bank trade groups seek change in FHFA’s capital treatment relating to access of FHLBs; Ginnie portal to re-open Oct. 25; aviation ABS investors in holding pattern on collateral in Russia.

Ambac, BofA Settle Non-Agency MBS Lawsuit for $1.8 Billion

bivey@imfpubs.com — Thu, 13 Oct 2022 16:30:36 -0400

A trial that started in September after years of delays ended with a settlement. Bank of America agreed to pay $1.84 billion to settle claims tied to non-agency MBS issued by Countrywide Financial prior to the 2008 financial crisis.

CMBS Valuation Practices Face Scrutiny Amid Trump Lawsuit

bivey@imfpubs.com — Thu, 29 Sep 2022 17:32:05 -0400

A lawsuit filed by New York’s attorney general against Donald Trump put a spotlight on valuation practices for commercial properties. Commercial MBS participants note that protections are in place regarding potentially inflated appraisals.

Grapevine: Securitization a Factor in FHLB Review; Ambac Lawsuit

bivey@imfpubs.com — Thu, 08 Sep 2022 15:49:50 -0400

MBA urges FHFA to consider securitization when reviewing the Federal Home Loan Bank system; Ambac’s MBS lawsuit against Countrywide goes to trial 12 years later; MISMO seeks comments on template for BWIC activity.

Angel Oak Settles with SEC Over Misreporting Claim

bivey@imfpubs.com — Thu, 18 Aug 2022 17:16:53 -0400

Angel Oak Capital Advisors and a portfolio manager with the company settled with the SEC, which alleged improper reporting of delinquencies on a fix-and-flip securitization issued by Angel Oak in 2018.

UBS Wins Appeal Over Employee Termination

bivey@imfpubs.com — Thu, 18 Aug 2022 17:12:58 -0400

An appeals court overturned a ruling that ordered UBS to pay more than $2.5 million to a former commercial MBS research analyst. The verdict conflicts with other circuit court decisions and could end up at the Supreme Court.

Courts Still Plowing New Ground in Legacy Non-Agency MBS Cases

bivey@imfpubs.com — Thu, 16 Jun 2022 17:55:42 -0400

Recent court rulings on litigation involving non-agency MBS issued prior to 2008 are setting new precedents, with broad ramifications.

SEC Sues Morningstar Over CMBS Ratings in 2015 and 2016

bivey@imfpubs.com — Thu, 25 Feb 2021 14:46:00 -0500

Morningstar argues it can use undisclosed loan-specific stress adjustments for subjective reasons, including to bring the rating for a commercial MBS in line with expectations based on similar deals.

Credit Suisse to Take a Loss in 4Q20 Due to Legal Defeat

bivey@imfpubs.com — Thu, 14 Jan 2021 14:24:00 -0500

The New York Supreme Court recently ruled in favor of the plaintiff in a decade-plus-old case against Credit Suisse tied to legacy non-agency MBS.

NewRez, Angel Oak Sued Over Aborted Non-QM Deals

pmuolo@imfpubs.com — Thu, 18 Jun 2020 14:50:00 -0400

When the pandemic struck this spring, non-QM sales in progress fell apart involving some heavy hitters like NewRez. Now those loan buyers are getting sued for reneging on their contracts.

SEC Fines Semper Capital for Mismarking Investments

bivey@imfpubs.com — Thu, 07 May 2020 13:15:00 -0400

Semper Capital has agreed to pay $375,000 to settle charges that it inflated the value of certain investments in its non-agency MBS fund.

Left Holding Loans Meant for MBS, Velocity Adjusts

bivey@imfpubs.com — Thu, 09 Apr 2020 14:30:00 -0400

Velocity Financial raised capital by selling stock after plans to issue MBS were disrupted by volatility from the coronavirus. Several REITs also provided updates on their financials.

Reforms Suggested to Attract Investors to Non-Agency MBS

bivey@imfpubs.com — Thu, 12 Mar 2020 13:00:00 -0400

A longer statute of limitation and increased disclosure requirements could help attract long-term investors in the MBS and ABS market, industry experts recommend.

NY Judge Denies Plaintiff Use of Sampling Expert

news@imfpubs.com — Thu, 05 Dec 2019 09:22:00 -0500

Late last month, a Manhattan district court judge denied a plaintiff investor's motion to hire experts to perform statistical sampling analysis in a case involving legacy MBS.

Former Deutsche Bank Executive Settles Subprime Lawsuit

dhollier@imfpubs.com — Thu, 21 Nov 2019 09:45:00 -0500

The case is one of the rare instances in which an individual has been held accountable for actions taken during the subprime mortgage crisis.

NY Sets Six-Year Statute of Limitation Under Martin Act

bivey@imfpubs.com — Thu, 17 Oct 2019 09:30:00 -0400

New York has set a six-year statute of limitation to bring charges under the Martin Act. The deadline issue has been a bone of contention in a court case between the state attorney general and Credit Suisse.

Credit Card ABS Case Could Upend Industry’s Use of Preemption

bivey@imfpubs.com — Thu, 22 Aug 2019 16:00:00 -0400

A class-action lawsuit against the issuer of a credit card ABS has the potential to eliminate the preemption banks rely on when contributing assets to MBS and ABS.

Countrywide MBS Lawsuit May Set a Precedent

bivey@imfpubs.com — Thu, 15 Aug 2019 17:06:00 -0400

Investors in interest-only tranches of Countrywide MBS are seeking to change the way payments are calculated.

SEC Fines Hedge Fund Manager for Undervaluing MBS Holdings

bivey@imfpubs.com — Thu, 27 Jun 2019 13:17:00 -0400

Deer Park Road Management Company was fined for undervaluing non-agency MBS in a hedge fund. The action is aimed at discouraging artificially smooth performance reporting.

NY High Court Rules on Two Residential MBS Cases

news@imfpubs.com — Fri, 08 Mar 2019 00:00:00 -0500

The New York State Court of Appeals on Feb. 15 issued mixed rulings on two claims brought by a trustee against a seller and sponsor of three residential MBS trusts.