|
Defendant
|
Plaintiff
|
Court
|
Amount
|
Overview
|
Case Title |
Case Number
|
Date Filed |
Link to Story |
| 25 current and former officers of failed Western Corporate Federal Credit Union |
Seven credit unions |
California |
na |
Defendants abandoned their fiduciary duty to invest conservatively in liquid assets and instead poured capital into risky, highly leveraged mortgage-backed securities. |
na |
na |
na |
www.mortgagedaily.com/LitigationGraveyard123009.asp |
| Antonio Ibanez |
U.S. Bank National Association, as trustee for the Structured Asset Securities Corporation Mortgage Pass-Through Certificates, Series 2006-Z |
Massachusetts Land Court |
na |
Plaintiff, the securitization trustee, foreclosed on the defendant’s loan before the loans had been properly assigned to the trustee. The judge denied a motion to vacate the judgment finding that the foreclosure sale was invalid because it failed to meet the minimum requirements of the Massachusetts foreclosure statute. |
U.S. Bank National Association v. Ibanez |
08 MISC 384283 (KCL) |
na |
www.mortgagedaily.com/LawsuitMaForeclosures102109.asp |
| Bank of America, N.A. |
BNP Paribas Mortgage Corp. |
U.S. District Court for the Southern District of New York |
na |
BNP alleges failure to ensure investments in commercial paper were properly collateralized in violation of contractual obligations. |
BNP Paribas Mortgage Corporation v. Bank of America N.A. |
Case No. 1:09cv09783 |
Nov. 25, 2009 |
www.mortgagedaily.com/LitigationGraveyard123009.asp |
| Bank of America, N.A. |
Deutsche Bank AG |
U.S. District Court for the Southern District of New York |
na |
DB alleges failure to ensure investments in commercial paper were properly collateralized in violation of contractual obligations. |
Deutsche Bank AG v. Bank of America, N.A. |
Case No. 1:2009cv09784 |
Nov. 25, 2009 |
www.mortgagedaily.com/LitigationGraveyard123009.asp |
| Bear Stearns Asset Management Inc. et al. |
Bank of America et al. |
U.S. District Court for the Southern District of New York |
$4,000,000,000 |
Defendant’s motion to dismiss denied. A federal district court judge has ruled that Bank of America Corp. can proceed with its $4 billion lawsuit based on contract and fraud claims against Bear Stearns Asset Management and two former Bear hedge fund managers. |
Bank of America et al. v. Bear Stearns Asset Management Inc. et al. |
Case No. 08-cv-09265 |
Oct. 2008 |
www.mortgagedaily.com/Lawsuits102709.asp, www.mortgagedaily.com/MbsLitigation122909.asp |
| Bear Stearns Mortgage Funding Trust 2006-AR1, Structured Asset Mortgage Investments II, Inc., Jeffrey L. Verschleiser, Michael B. Nierenberg, Jeffrey Mayer, Thomas F. Marano, Joseph T. Jurkowski, Bear Stearns & Co., Inc., JP Morgan Chase, Inc. |
New Jersey Carpenters Health Fund |
U.S. District Court for the Southern District of New York |
na |
Suit alleges fraudulent and misleading statements regarding the quality of securitized investments, including misleading statements regarding quality of underlying loans, such as loan-to-value ratio, debt-to-income levels, etc. |
New Jersey Carpenters Fund v. Bear Stearns Mortgage Funding Trust 2006-AR1 et al. |
Case No. 1:2008cv08093 |
Sept. 18, 2008 |
www.mortgagedaily.com/MbsLitigation122909.asp |
| Brookstreet Securities Corp, Stanley C. Brooks |
Securities and Exchange Commission |
U.S. District Court for the Central District of California |
$300,000,000 |
Criminal action against securities brokerage selling high risk collateralized mortgage obligations to risk averse investors, misrepresenting the risk associated with the assets. |
SEC v. Brookstreet Securities Corp. |
Case No. SACV09-01431 |
Dec. 8, 2009 |
www.mortgagedaily.com/MbsLitigation122909.asp |
| Credit Suisse Securities (USA), LLC, DLJ Mortgage Capital, Inc., Select Portfolio Servicing, Inc. |
MBIA Insurance Corp. |
New York State Supreme Court, Manhattan |
$296,000,000 |
Mortgage insurer suing issuers for alleged misleading statements regarding the risk of the assets to be insured. |
MBIA Insurance Corp. v. Credit Suisse Securities (USA) LLC, et al. |
Case No. 603751/2009 |
na |
www.mortgagedaily.com/MbsLitigation122909.asp |
| former U.S. Central president and CEO Francis Lee, two former officers, the board of directors and the accounting firm of RubinBrown LLP |
Corporate America Credit Union |
U.S. District Court in Alabama |
$9,000,000 |
Defendants allegedly withheld information about upcoming MBS write downs. |
na |
na |
October 20, 2009 |
www.mortgagedaily.com/MbsLitigation122909.asp |
| Freddie Rosario |
LaSalle Bank National Association, as trustee for the certificate holders of Bear Stearns Asset Backed Securities I, LLC Asset-Backed Certificates Series 2007-HE2″ |
Massachusetts Land Court |
The Massachusetts Land Court upheld the validity of a foreclosure which took place after the loan was assigned to the securitization trustee, but before the assignment was recorded. |
MBS |
LaSalle Bank National Association, as Trustee v. Rosario |
MISC 386018 (KCL) |
na |
www.mortgagedaily.com/LawsuitMaForeclosures102109.asp |
| Marc. A. Larace and Tammy L. Larace |
Wells Fargo Bank, N.A., as trustee for ABFC 2005-OPT 1 Trust, ABFC Asset Backed Certificates Series 2005-OPT 1 |
Massachusetts Land Court |
na |
Plaintiff, the securitization trustee, foreclosed on the defendant’s loan before the loans had been properly assigned to the trustee. The judge denied a motion to vacate the judgment finding that the foreclosure sale was invalid because it failed to meet the minimum requirements of the Massachusetts foreclosure statute. |
Wells Fargo Bank v. Larace |
08 MISC 386755 (KCL) |
na |
www.mortgagedaily.com/LawsuitMaForeclosures102109.asp |
| Morgan Stanley & Co. Inc., Morgan Stanley & Co. International Ltd. |
Employees’ Retirement System of the Government of the Virgin Islands |
U.S. District Court for the Southern District of New York |
na |
Pension fund alleges bank colluded with ratings agencies to obtain triple-A ratings for CDO backed by highly risky assets. These were then sold to investors at the same time that the bank was “shorting” the very same assets, thus indicating its knowledge that the assets were not worth the value at which they were sold. |
Employees’ Retirement System of the Government of the Virgin Islands et al v. Morgan Stanley & Co. Incorporated et al. |
Case No. 1:2009cv10532 |
Dec. 24, 2009 |
www.mortgagedaily.com/LitigationGraveyard123009.asp |
| Standard & Poor’s Financial Services LLC, The McGraw-Hill Companies Inc., Moody’s Corp., Moody’s Investor Services Inc., Fitch Inc. |
Ohio Police & Fire Pension Fund, Ohio Public Employees Retirement System, State Teachers Retirement System of Ohio, School Employees Retirement Systems of Ohio, Ohio Public Employees Deferred Compensation Program |
U.S. District Court for the Southern District Court of Ohio |
na |
Ohio AG sues rating agencies over improper ratings of structured finance assets, such as securitized loans, CDOs, etc. |
Ohio Police & Fire Pension Fund, et al v. Standard & Poor’s Financial Services LLC, et al. |
Case No. 2:09-cv-1054 |
Nov. 20, 2009 |
www.mortgagedaily.com/MbsLitigation122909.asp |
| Standard & Poor’s, Moody’s, Fitch |
Connecticut Attorney General Richard Blumenthal |
U.S. District Court for the Southern District Court of Ohio |
na |
Alleged improper ratings of structured finance assets, such as securitized loans, CDOs, etc. |
na |
na |
November 2009 |
www.mortgagedaily.com/MbsLitigation122909.asp |
| Structured Asset Mortgage Investments II, Inc., Bear Stearns Alt-A Trust 2006-6, Bear Stearns ARM Trust 2006-4, Bear Stearns Mortgage Funding Trust 2006-AR2, Structured Asset Mortgage Investments II Trust 2006-AR7, Structured Asset Mortgage Investments II Trust 2006-AR6, Bear Stearns Alt-A Trust 2006-5, Bear Stearns Mortgage Funding Trust 2006-AR5, Bear Stearns Alt-A Trust 2006-8, Bear Stearns Mortgage Funding Trust 2006-AR4, Structured Asset Mortgage Investments II Trust 2006-AR8, Bear Stearns Mortgage Funding Trust 2006-AR3, Bear Stearns Alt-A Trust 2006-7, Bear Stearns Alt-A Trust 2007-I, Bear Stearns Mortgage Funding Trust 2007-AR1, Bear Stearns Arm Trust 2007-3, Bear Stearns Mortgage Funding Trust 2007-AR3 and Bear Stearns Arm Trust |
Pension Trust Fund For Operating Engineers |
U.S. District Court for the Southern District of New York |
na |
Suit alleges fraudulent and misleading statements regarding the quality of securitized investments, including misleading statements regarding quality of underlying loans, such as loan-to-value ratio, debt-to-income levels, etc. |
Pension Trust Fund for Operating Engineers v. Structured Asset Mortgage Investments II, Inc. et al. |
Case No. 09-cv-6172-LTS |
July 9, 2009 |
www.mortgagedaily.com/MbsLitigation122909.asp |
| U.S. Bank National Association; Wells Fargo Bank, N.A. |
Antonio Ibanez; Mark A Larace and Tammy L. Larace |
Massachusetts Land Court |
na |
Judge Long consolidated three cases in which mortgagees failed to record assignments of mortgages prior to sale. Judge Long ruled if a foreclosing mortgagee does not have possession of an assignment dated prior to the date notice is published, the mortgagee does not possess sufficient title to foreclose. This effectively invalidates foreclosure sales where the foreclosing party can produce only an assignment which has a date after that of the date of the published notice, though the effective date of the assignment may be prior to the publication date. |
U.S. Bank National Association v. Ibanez; Wells Fargo Bank v. Larace |
08 MISC 384283; 08 MISC 386755 |
na |
www.mortgagedaily.com/ForeclosureLitigation111709.asp |
| Wells Fargo Bank |
Taylor, Bean, and Whitaker Mortgage Corp. |
U.S. Bankruptcy Court for the Middle District of Florida, Jacksonville |
na |
TBW challenged Wells’ decision to terminate it as a master servicer, leading to delay in investor payments. |
na |
na |
na |
www.mortgagedaily.com/TaylorBean102609.asp |
