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First-Quarter 2011 Mortgage Litigation Index

MBS Lawsuits
First-Quarter 2011 Mortgage Litigation Index
Lawsuits related to mortgage-backed securities.

Defendant
Plaintiff
Court
Amount
Overview
Case Title
Case Number
Date Filed Link to Story
Ally Financial Inc.’s mortgage unit GMAC Fannie Mae n/a $462,000,000 Ally Financial reached an agreement with Fannie Mae to settle its repurchase liabilities on $84 billion in securitizations. Ally will pay $462 million. n/a n/a n/a www.mortgagedaily.com/SettlementBoaGse010311.asp www.mortgagedaily.com/SettlementBoaGse010311.aspwww.mortgagedaily.com/MctBoaSettlement011211.asp
Bank of America Corp. Fannie Mae and Freddie Mac n/a $3,000,000,000 Bank of America Corp. reached an agreement with Fannie Mae and Freddie Mac to resolve outstanding and potential repurchase claims. The move will result in a fourth provision of around $3 billion, including $2 billion goodwill impairment at its home-loans unit. n/a n/a n/a www.mortgagedaily.com/SettlementBoaGse010311.asp www.mortgagedaily.com/SettlementBoaGse010311.aspwww.mortgagedaily.com/MctBoaSettlement011211.asp
Bank of America Corp., Brian T. Moynihan na United States District Court for the Southern District of New York n/a Defendants charged with violations of SEC act by concealing from investors its use of “dollar rolling,” a practice whereby it would move MBS off its books to another entity, but agree to repurchase the MBS after reporting its quarterly financial statement na na 2/24/2011 www.mortgagedaily.com/LawsuitsInvestors033011.asp
Countrywide Financial Corp. et al. Putnam Bank U.S. District Court for the District of Connecticut n/a Securities fraud class action alleging originator did not follow underwriting guidelines, misrepresentations re: quality of loans in securitization pool Putnam Bank v. Countrywide Fin. Corp. et al. 3:11-cv-00145-JCH 1/27/2011 https://www.mortgagedaily.com/litigationmbs021811.asp
Countrywide Home Lians, Inc. et al. MBIA Insurance Corp. Supreme Court of the State of New York $21,000,000,000 Judge grants motion for plaintiff to employ statistical sampling of large pool of mortgages to prove damages and cause of action for fraud, breach of contract. MBIA Ins. Corp. v. Countrywide Home Loans, Inc. et al. 602825/08 12/22/2010 https://www.mortgagedaily.com/litigationmbs021811.asp
EMC Mortgage Corp. Bear Stearns Mortgage Funding Trust 2007-AR2 by Wells Fargo N.A. Delaware Chancery Court, Wilmington n/a Trustee of securitization trust sues EMC seeking documentation regarding loans sold into securitization pool. Bear Stearns Mortgage Funding Trust 2007-AR2 by Wells Fargo N.A. v. EMC Mortgage Corp. CA6132 n/a https://www.mortgagedaily.com/litigationmbs021811.asp
EMC Mortgage Corp. Ambac Assurance Corp. U.S. District Court for the Southern District of New York n/a Bond insurer sues sponsor of securitizations alleging misrepresentations made to induce investors, made repurchase demand on EMC. Ambac Assurance Corp. v. EMC Mortgage Corp. 08 CV 94647 11/5/2008 https://www.mortgagedaily.com/litigationmbs021811.asp
Federal National Mortgage Association Sandra Maiden Court of Civil Appeals of Alabama n/a The appellate court reversed the trial court’s denial of the plaintiff’s motion to set aside the defendant’s default judgment. Maiden v. Fed’l Nat’l Mort. Assoc. 2090942 n/a www.mortgagedaily.com/LawsuitsForeclosures032411.asp
GMAC Mortgage MBIA Ins. Co. Supreme Court of the State of New York n/a Claim for fraudulent inducement survives motion to dismiss where insurer alleged misrepresentation re: quality of loans in an RMBS pool by originator. MBIA Ins. Co. v. GMAC Mortgage LLC 600837/2010 12/15/2010 https://www.mortgagedaily.com/litigationmbs021811.asp
Goldman Sachs & Co. ACA Financial Guaranty Corporation New York State Supreme Court $120,000,000 ACA Financial Guaranty Corp. filed a civil lawsuit alleging that Goldman Sachs committed fraud by helping a major client, Paulson & Co., rig a billion dollar deal by allowing the firm to pack securities backed by highly risky mortgages in 2007 as the housing market was beginning to collapse. ACA Financial Guaranty Corp. v. Goldman Sachs & Co. Index No. 650027/2011 1/6/2011 www.mortgagedaily.com/MctLawsuitGoldman010711.asp
J.P. Morgan Securities, LLC, Moody’s Corp., The McGraw-Hill Companies, Inc., Fitch, Inc., Federal Home Loan Bank of Pittsburgh Court of Common Pleas of Allegheny County n/a Fraudulent misrepresentation claims against rating agencies survive motion to dismiss. Stipulation giving the defendants until Jan. 28 to file answers was filed. Federal Home Loan Bank of Pittsburgh v. JPMorgan Securities, LLC et al. GD-09-016892 11/29/2010 https://www.mortgagedaily.com/litigationmbs021811.asp
JPMorgan Chase Bank, N.A. et al Allstate Bank, et al. Supreme Court of the State of New York $700,000,000 Investor sues alleging various misrepresentations regarding quality of loans in securitization pool, failure to follow underwriting guidelines. Claims of fraud, negligent misrepresentation, Sec. 11, 12(a) of Securities Act, and successor liability. Allstate Bank et al. v. JPMorgan Chase Bank et al. n/a 2/16/2011 https://www.mortgagedaily.com/litigationmbs021811.asp
Linda Sadr Department of Justice United States District Court for the Eastern District of Virginia $10,000,000 Indictment of woman running “mortgage elimination” service. Told customers that lenders acted illegally, and that woman’s business would represent customers in filing legal challenges, with proceeds of settlements going toward the balance of the mortgage. United States v. Sadr n/a 12/23/2010 www.mortgagedaily.com/litigationcriminal022111.asp
MBIA Inc., MBIA Insurance Corporations and MBIA Insurance Corp. of Illinois ABN AMRO Bank N.V., Barclays Bank PLC, BNP Paribas, Calyon, Canadian Imperial Bank of Commerce, Citibank, NA, HSBC Bank USA, NA, JPMorgan Chase Bank, NA, KBC Investments Cayman Islands V Ltd., Merrill Lynch International, Bank of America, NA, Morgan Stanley Capital Services, Inc., Natixis, Natixis Financial Products Inc., Cooperative Centrale Raifefise-Boerenleenbank BA, Royal Bank of Canada, Royal Bank of Scotland PLC, SMBC Capital Markets Ltd., Societe Generale, UBS AG, Wachovia Bank, NA Supreme Court of New York, County of New York; Appellate Division of the Supreme Court of New York, First Dept. n/a Plaintiffs challenged MBIA’s restructuring plan that segregated MBIA’s policies covering mortgage and other structured securities from the firm’s municipal bond obligations, which would be insured by a new subsidiary. Policy holders sued MBIA and co-defendants alleging that defendants’ restructuring resulted in MBIA (policy issuer) undercapitalized and thus unable to honor policies it issued backing structured finance investments. Appellate Court reversed dismissal, reinstating the case. ABN AMRO Bank NV et al. v. MBIA, Inc. et al. 601475-2009 5/13/2009 www.mortgagedaily.com/LawsuitsInvestors033011.aspwww.mortgagedaily.com/litigationmbs021811.asp
Nomura Asset Acceptance Corp. Plumbers Union No. 12 Pension Fund U.S. Court of Appeals for the First Circuit n/a 1st Circuit reversed dismissal of class action suit filed on behalf of RMBS investors, finding plaintiffs had standing to proceed with respect to two of eight securitization trusts originally included in the suit. Plumbers’ Union Local No. 12 Pension Fund v. Nomura Asset Acceptance Corp. 08-cv-10446 1/20/2011 www.mortgagedaily.com/litigationmbs021811.asp
Radius Capital Corp., Robert A. Digiorgio SEC U.S. District Court for the Middle District of Florida n/a Radius Capital Corp. and its owner are being sued by the SEC over mortgage-backed securities it issued. The SEC has alleged that Radius told investors that the loans backing the securities were government-insured. Many of the loans, however, were not government-insured and many would not even qualify. SEC v. Radius Capital Corp. et al. 2:2011cv00116 3/7/2011 www.mortgagedaily.com/LawsuitRadius030811.asp
Residential Capital LLC, Royal Bank of Scotland Group, PLC New Jersey Carpenters Health Fund, New Jersey Carpenters Vacation Fund and Boilermaker Blacksmith National Pension Trust U.S. District Court for the Southern District of New York n/a Denial of class certification to group of investors in mortgage backed securities New Jersey Carpenters Health Fund, et al. v. Residential Capital, LLC, et al. 08 CV 8781; 08 CV 5093 1/18/2011 www.mortgagedaily.com/litigationmbs021811.asp
Richard S. Fuld, Jr. et al California Public Employees’ Retirement System U.S. District Court for the Northern District of California $700,000,000 Calpers sued Lehman Bros. executives and underwriters alleging they hid the company’s exposure to toxic mortgage securities. Calpers purchased Lehman stock and debt and was harmed when Lehman collapsed. California Public Employees’ Retirement System v. Richard S. Fuld, Jr. et al. 11-cv-0562 n/a www.mortgagedaily.com/litigationmbs021811.asp
Royal Bank of Scotland Massachusetts Pension Reserves Investment Management Board and Public Employees Retirement System of Mississippi, individually and on behalf of all others similarly situated United States District Court for the Southern District of New York n/a Plaintiffs allege that they suffered massive losses in shareholder value as a result of a series of write-downs that occurred at RBS due to RBS’s substantial holdings in subprime and other mortgage related assets. In re Royal Bank of Scotland Group PLC Securities Litigation 1:09-cv-00300-DAB 7/15/2009 www.mortgagedaily.com/LawsuitsInvestors033011.asp

4th quarter 2010 MBS lawsuits

3rd quarter 2010 MBS lawsuits

2nd quarter 2010 MBS lawsuits

1st quarter 2010 MBS lawsuits

4th-quarter 2009 MBS lawsuits

3rd-quarter 2009 MBS lawsuits

2nd-quarter 2009 MBS lawsuits

1st-quarter 2009 MBS lawsuits

4th-quarter 2008 MBS lawsuits

full year 2007 MBS lawsuits

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