Wells Fargo and BlackRock Settle RMBS Trustee Litigation – NMP Skip to main content

Wells Fargo and BlackRock Settle RMBS Trustee Litigation

Phil Hall
Nov 12, 2018
The Federal Deposit Insurance Corporation (FDIC) has reached a settlement with HomeStreet Bank of Seattle for violations of the Real Estate Settlement Procedures Act

 
Wells Fargo Bank N.A. and a group of institutional investors including funds affiliated with BlackRock Inc. and PIMCO have announced the resolution of two class action lawsuits in federal and California state court related to Wells Fargo’s role as trustee for 271 residential mortgage-backed securities (RMBS) trusts created prior to the 2008 economic meltdown.
 
According to a statement issued by the bank and the institutions investors, Wells Fargo will pay $43 million to resolve the charges and will also pay up to $70 million from certain trust reserve accounts established in connection with the litigation will be released. The settlement does not require an admission of wrongdoing by Wells Fargo.
 
“Consistent with our sound business practices, we believe that we appropriately fulfilled our duties as trustee by performing the responsibilities prescribed in the relevant contracts for these decade-old trusts,” said Troy Kilpatrick, head of Wells Fargo Corporate Trust Services. “While we disagree with the allegations, it is in the best interest of all parties to put this protracted litigation behind us and we are satisfied with this settlement.”
 
“Following more than four years of litigation, including fact and expert discovery, we concluded that this agreement provides a fair and reasonable resolution of the claims,” added Timothy A. DeLange of Bernstein Litowitz Berger & Grossmann LLP, who served as the counsel on behalf of PIMCO, BlackRock and the other institutional investor plaintiffs. “We appreciate Wells Fargo’s professionalism in reaching this agreement and commend their efforts to work with certificate holders to resolve the litigation. While we believe the claims are meritorious, the settlement provides an immediate and concrete benefit for class members, while bringing the litigation to a close.”
 
The settlement requires court approval before becoming final.
Published
Nov 12, 2018
Equifax Telling Lenders Of Potential Errors In Credit Scores

About 12% of customers may have been affected, according to a source.

Industry News
May 27, 2022
Lakeview Loan Servicing Faces Multiple Lawsuits Over Data Breach

At least a dozen civil lawsuits have been filed against the company, all seeking class-action status.

Industry News
May 26, 2022
Homepoint Rolls Out Jumbo ARM Loans

Homepoint's Jumbo ARM is a strategic addition to the company’s expanding jumbo portfolio.

Industry News
May 25, 2022
Planet Home Lending Expands in Oregon

New team in Portland focuses on construction lending in the Northwest.

Career
May 24, 2022
PennyMac Cutting 207 Jobs

A wide variety of positions are affected.

Industry News
May 24, 2022
Loan Officer Charged With Bank Fraud, Identity Theft

If convicted, she faces up to 30 years in federal prison on each bank fraud count and a mandatory consecutive 2 years’ imprisonment.

Industry News
May 24, 2022