Settlement Reportedly Reached in Nine-Year-Old MBS Lawsuit – NMP Skip to main content

Settlement Reportedly Reached in Nine-Year-Old MBS Lawsuit

Phil Hall
Mar 15, 2017
A law firm representing a group of worker pension funds is stating that it has reached a $165 million settlement with four lenders relating to problem with a 2006 mortgage-backed securities (MBS) investment

A law firm representing a group of worker pension funds is stating that it has reached a $165 million settlement with four lenders relating to problem with a 2006 mortgage-backed securities (MBS) investment.
 
In its statement, Cohen Milstein Sellers & Toll said that its clients achieved a settlement in a nine-year-old class action lawsuit that charged NovaStar, the Royal Bank of Scotland, Wells Fargo and Deutsche Bank with misleading investors on the quality of securities from NovaStar in 2006. The securities were downgraded to junk bond status, according to the law firm, which resulted in losses for the worker pension funds that purchased them.
 
“This has been a long, complex process, and our clients and the attorneys on the case have overcome significant obstacles in reaching this settlement,” said the plaintiffs’ lead attorney, Joel P. Laitman of Cohen Milstein Sellers & Toll. “This settlement will give closure and monetary relief to investors who suffered losses in connection with these NovaStar MBS.”
 
The settlement has yet to be approved by the U.S. District Court in the Southern District of New York, and no mention of the settlement was cited on the Department of Justice’s Web site.
Published
Mar 15, 2017
CFPB Alters Threshold For Exempting Loans From Special Appraisal Requirements

The 2022 threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans will increase from $27,200 to $28,500. 

Regulation and Compliance
Dec 02, 2021
Regulatory Review, Reformatted

The progress made to date with NMLS modernization

Regulation and Compliance
Dec 01, 2021
November Surprise: Fed May Accelerate Tapering

Chairman Powell tells Congress of concerns about inflation, COVID-19 variant’s effect on recovery.

Regulation and Compliance
Dec 01, 2021
FHFA's 2022 Conforming Loan Limit Maxes Out At Nearly $1M

Baseline limit for Fannie, Freddie increases to $647,200, but for 'high-cost areas' loan ceiling set at $970,800 for single-family homes.

Regulation and Compliance
Dec 01, 2021
Regulators Are Back In The Saddle

There’s not only a new sherriff in town, it’s a whole gang of them.

Regulation and Compliance
Nov 29, 2021
CFPB Seeks Insight On Creating A Fairer Mortgage Market

The Consumer Financial Protection Bureau has been actively looking to create a fairer mortgage market, free of discriminatory engagements. To do so, it issued a Request for Information to seek input on rules implementing the Home Mortgage Disclosure Act.

Regulation and Compliance
Nov 17, 2021