The National Credit Union Administration (NCUA) has filed suit in Federal District Court in Kansas against JP Morgan Securities and Bear Stearns & Company, alleging violations of federal and state securities laws in the sale of $3.6 billion in mortgage-backed securities to four corporate credit unions. NCUA’s suit—the largest the agency has filed to date—alleges that Bear Stearns made misrepresentations in connection with the underwriting and subsequent sale of mortgage-backed securities to U.S.Click to continue
New York Attorney General Eric T. Schneiderman has filed a Martin Act complaint against Credit Suisse Securities (USA) LLC and its affiliates for making fraudulent misrepresentations and omissions to promote the sale of residential mortgage-backed securities (RMBS) to investors. According to AG Schneiderman’s lawsuit, Credit Suisse deceived investors as to the care with which they evaluated the quality of mortgage loans packaged into residential mortgage-backed securities prior to 2008.Click to continue
Wells Fargo was the top commercial/multifamily mortgage originator in 2011, according to a report from the Mortgage Bankers Association (MBA), Commercial Real Estate/Multifamily Finance Firms—Annual Origination Volumes. Other originators in the top 10 include HFF LP, Meridian Capital Group LLC, CBRE Capital Markets Inc., PNC Real Estate, MetLife Real Estate Investments, Deutsche Bank Commercial Real Estate, Prudential Mortgage Capital Company, Northmarq Capital LLC and JP Morgan (CMBS).
Highlights of the listing include:Click to continue
The Securities & Exchange Commission (SEC) has announced that JP Morgan Securities LLC will pay $153.6 million to settle SEC charges that it misled investors in a complex mortgage securities transaction just as the housing market was starting to plummet. Under the settlement, harmed investors will receive all of their money back. In settling the SEC’s fraud charges against the firm, JP Morgan also agreed to improve the way it reviews and approves mortgage securities transactions.Click to continue
The National Credit Union Administration (NCUA) has filed two lawsuits against securities firms alleging violations of federal and state securities laws and misrepresentations in the sale of hundreds of securities. Additional law suits may follow in order to recover losses from the purchase of securities that caused the failures of five, large wholesale credit unions.Click to continue
The law firm of Cohen Milstein Sellers & Toll PLLC has filed an amended consolidated class action complaint in its landmark litigation against Countrywide Financial Corporation and other underwriter defendants who were prominently involved in the failure of mortgage-backed securities (MBS) over the last several years. Countrywide, since acquired by Bank of America, was one of the largest and most controversial institutions involved in the MBS market.Click to continue