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More Credit Crunches
Posted on 20 Feb 2008 by Ed Viguerie

Two recent articles in Business Week and the New York Times indicate that subprime mortgage lending crisis is spilling over into other markets. From the New York Times , we find out that it is not just the subprime borrowers that are having a tough... Read More

Tags: Subprime

Introspection -- Credit Crisis
Posted on 17 Apr 2008 by Ed Viguerie

The Financial Times published two interesting pieces last week ( here and here ) on the efforts of major banks to take blame for the current financial crisis and to suggest areas for reform. FT characterizes these efforts as attempts to avoid increased... Read More

Tags: Subprime

Rapp & Matasar on Potential Rating Agency Liability & subprime backed-securities
Posted on 13 Oct 2008 by Robert N. Rapp and Scott C. Matasar

Rating agencies assigned credit ratings to subprime Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDOs). In making investment decisions, many investors relied on these credit ratings. However, the accuracy and integrity... Read More

Tags: Subprime

She Came In Through The Bathroom Window
Posted on 29 Apr 2008 by Ed Viguerie

There were a number of interesting real estate/mortgage crisis/collapse of western civilization stories over the weekend: From the Washington Post comes this story about the challenges facing suburban law enforcement now required to police so many... Read More

Tags: Subprime

Is the FDIC Gearing Up for Subprime-Induced Bank Meltdown? .
Posted on 29 Feb 2008 by LexisNexis Emerging Issues Community Staff

A few days ago, the Wall Street Journal reported that the Federal Deposit Insurance Corporation (FDIC) is recruiting its own retirees in order to beef up staff in anticipation of a sharp increase in bank failures, which could amount to 100 or more in... Read More

Tags: Subprime

Demonstrating Scienter Requirement in Subprime Securities Lawsuits
Posted on 21 Dec 2007 by Joan Grossman

A recent ruling by U.S. Judge George H. Wu of the Central District of California indicates that shareholders may have difficulty in demonstrating the scienter requirement in subprime securities lawsuits. On Dec. 4, Judge Wu dismissed the second amended... Read More

Tags: Subprime

Joy Harmon Sperling on the Groundbreaking Decision in Massachusetts v. Fremont Investment
Posted on 21 Apr 2008 by Joy Harmon Sperling

The Massachusetts Superior Court recently enjoined a mortgagee from foreclosing on "presumptively unfair" mortgages without first obtaining the assent of the Massachusetts Attorney General or, if approval is not granted, without the Court's... Read More

Tags: Subprime

James M. Wilson Jr. on the Recent Disclosures By Fannie Mae and Freddie Mac of Losses Attributable to Sub-Prime Mortgages and Allegations of Collusion to Inflate Appraisals
Posted on 6 Feb 2008 by James M. Wilson, Jr.

It now appears that the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac") are subject to the same kind of bruising losses afflicting other large financial institutions... Read More

Tags: Subprime

Agreement on a Bailout Plan
Posted on 29 Sep 2008 by Ed Viguerie

Thank God for Friday's Presidential debate. It got the two presidential campaigns out of town just long enough for Congressional leaders to reach a consensus on a bail-out plan. It's called the Emergency Economic Stabilization Act of 2008 . It... Read More

Tags: Subprime

Subprime Lending or Options Backdating, Which Will Receive a Legislative Haymaker?
Posted on 19 Mar 2008 by John Rak

Recently, the financial industry and the country itself has faced two sweeping market-related “scandals” or “crises” (for lack of a better term): the issues in the mortgage industry with subprime lending, and the executive stock... Read More

Tags: Subprime

Lapine on City of Cleveland v. Ameriquest Mortgage Securities, Inc.
Posted on 15 Jun 2009 by Kenneth M. Lapine

In City of Cleveland v. Ameriquest Mortg. Sec., Inc. , 2009 U.S. Dist. LEXIS 41303 (N.D. Ohio May 15, 2009) , the City of Cleveland filed an action against over 20 major investment banks, accusing the banks of creating a public nuisance by reason of their... Read More

Tags: Subprime

The Congress Strikes Back
Posted on 23 Sep 2008 by Ed Viguerie

Criticism of Paulson's bailout plan came swiftly after release of the details on Friday. Examples can be found here , here , here , and here . On Monday Congressional Democrats submitted counter-proposals. Key elements include oversight and the acquisition... Read More

Tags: Subprime

Ben Bernanke Explains It All
Posted on 24 Sep 2008 by Ed Viguerie

Like many people I assumed that the Treasury Department, as part of its the bailout plan for the financial industry, would buy up bad debt at less than market value. I wondered how firms would make up for the hole that would leave in their balance sheets... Read More

Tags: Subprime

Breaking the ARS Liquidity Logjam
Posted on 4 Mar 2008 by LexisNexis Emerging Issues Community Staff

Zealous Trading Group's announcement that its electronic marketplace will facilitate secondary trading for the $330 billion market of Auction Rate Securities might help increase overall credit market liquidity, and perhaps indirectly help ease the... Read More

Tags: Subprime

Wachovia, KPMG Reach $627 Million Settlement With Investors
Posted on 9 Aug 2011 by Timothy Raub

NEW YORK - (Mealey's) In what Wachovia Corp. shareholders' attorneys are calling the single-largest recovery for claims brought "solely pursuant to" the Securities Act of 1933, the shareholders, Wachovia, certain of its affiliates and... Read More

  • Blog Post: H.R. 3915, "The Mortgage Reform and Anti-Predatory Lending Act of 2007"

    On November 16, 2007, the House passed H.R. 3915, designed to prevent a repeat of the problems associated with the subprime lending crisis. Robert M. Jaworski, examines the bill that could dramatically alter the residential mortgage loan origination landscape. Mr. Jaworski writes: The most critical...
  • Blog Post: Demonstrating Scienter Requirement in Subprime Securities Lawsuits

    A recent ruling by U.S. Judge George H. Wu of the Central District of California indicates that shareholders may have difficulty in demonstrating the scienter requirement in subprime securities lawsuits. On Dec. 4, Judge Wu dismissed the second amended complaint filed by IndyMac Bancorp Inc. shareholders...
  • Blog Post: Kenneth M. Lapine on In re Foreclosure Cases 2007 U.S. Dist. LEXIS 84011 (N.D. Ohio 2007)

    This case dismissing numerous foreclosure actions for lack of standing because the lenders failed to establish a chain of title to the loans may provide troubled borrowers with an opportunity to seek accommodations with their lenders. In this commentary, Kenneth M. Lapine discusses the import of this...
  • Blog Post: New Research Finds That Problem Mortgages Now Account for Significant Number of Home Listings

    The ongoing mortgage crisis is rapidly reshaping home sale activity nationwide. According to a new Inside Mortgage Finance -sponsored study, a significant number of home sale listings are being triggered by problem or troubled mortgages. The study, based on a national survey of real estate agents,...
  • Blog Post: The Perfect Storm--Legal Issues Surrounding the Subprime Mortgage Lending Crisis

    Robert M. Jaworski analyzes the "perfect storm" that has hit the subprime mortgage industry--including what caused the storm and what the effects of the storm have been. Mr. Jaworski writes: Speculation and fraud also played a part in this perfect storm. Real estate speculators used these...
  • Blog Post: James M. Wilson Jr. on the Recent Disclosures By Fannie Mae and Freddie Mac of Losses Attributable to Sub-Prime Mortgages and Allegations of Collusion to Inflate Appraisals

    It now appears that the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac") are subject to the same kind of bruising losses afflicting other large financial institutions as a result of sub-prime mortgage-related investments...
  • Blog Post: Lapine on City of Cleveland v. Deutsche Bank

    On Jan. 10, 2008, the City of Cleveland filed a complaint against a number of investment banks alleging that their proliferation of subprime loans resulted in foreclosures that created a public nuisance. In discusses the City’s arguments, Kenneth M. Lapine writes: The use of such a novel...
  • Blog Post: More Credit Crunches

    Two recent articles in Business Week and the New York Times indicate that subprime mortgage lending crisis is spilling over into other markets. From the New York Times , we find out that it is not just the subprime borrowers that are having a tough time but the prime borrowers with good credit. According...
  • Blog Post: Credit Fears Spread

    From this article in the Wall Street Journal by CARRICK MOLLENKAMP and SERENA NG comes word that the fear and havoc caused by the collapse of the subprime mortgage market is even being felt in the rarefied atmosphere of synthetic collateralized-debt obligations (CDOs), and constant-proportion debt obligations...
  • Blog Post: Is the FDIC Gearing Up for Subprime-Induced Bank Meltdown? .

    A few days ago, the Wall Street Journal reported that the Federal Deposit Insurance Corporation (FDIC) is recruiting its own retirees in order to beef up staff in anticipation of a sharp increase in bank failures, which could amount to 100 or more in the next 12 to 24 months. The FDIC, a federal agency...
  • Blog Post: Breaking the ARS Liquidity Logjam

    Zealous Trading Group's announcement that its electronic marketplace will facilitate secondary trading for the $330 billion market of Auction Rate Securities might help increase overall credit market liquidity, and perhaps indirectly help ease the mortgage credit situation. That announcement includes...
  • Blog Post: Subprime Lending or Options Backdating, Which Will Receive a Legislative Haymaker?

    Recently, the financial industry and the country itself has faced two sweeping market-related “scandals” or “crises” (for lack of a better term): the issues in the mortgage industry with subprime lending, and the executive stock option backdating situation. Both of these scandals...
  • Blog Post: Thacher Proffitt & Wood LLP on the Effect of the Economic Stimulus Act of 2008

    In this analysis of the Economic Stimulus Act of 2008, Stephen F.J. Ornstein, David A. Tallman, and John P. Holahan of Thacher Proffitt & Wood LLP discuss the effect of the recent economic stimulus package on the coverage of several state anti-predatory lending statutes, and conclude that an unintended...
  • Blog Post: Vegas Foreclosure? Hit the Bank

    The collapse of the housing market in the United States has been the source of some fascinating stories as folks try to cope with the crises. We’ve seen stories about delinquent homeowners mailing the keys to their house back to the bank and walking away, giving birth to the phrase “jingle...
  • Blog Post: A Suburban Love Affair

    I like to walk. Given the opportunity I much prefer to walk to stores, restaurants, and folk’s houses rather than drive. Unfortunately, doing so is always an adventure in my town. The whole place is designed around automobiles. Development is spread out. Business and residential uses are segregated...
  • Blog Post: Good Times For Apartment REITs

    It is, of course, a well worn cliché that in every crisis there is opportunity. According to Vivian Marino of the New York Times, the subprime mortgage crisis is apparently no different . With the rate of home ownership falling, foreclosures on the rise, and first time home buyers finding...
  • Blog Post: Introspection -- Credit Crisis

    The Financial Times published two interesting pieces last week ( here and here ) on the efforts of major banks to take blame for the current financial crisis and to suggest areas for reform. FT characterizes these efforts as attempts to avoid increased regulation of the financial sector. According to...
  • Blog Post: Joy Harmon Sperling on the Groundbreaking Decision in Massachusetts v. Fremont Investment

    The Massachusetts Superior Court recently enjoined a mortgagee from foreclosing on "presumptively unfair" mortgages without first obtaining the assent of the Massachusetts Attorney General or, if approval is not granted, without the Court's permission. In so doing, the Court has taken the...
  • Blog Post: She Came In Through The Bathroom Window

    There were a number of interesting real estate/mortgage crisis/collapse of western civilization stories over the weekend: From the Washington Post comes this story about the challenges facing suburban law enforcement now required to police so many empty houses. Police are encountering a variety of...
  • Blog Post: Look To Your Orb For The Warning

    With no new collapses of major financial institutions and little to report other than the continuing decline of housing prices and legislative proposals to close the barn door, the subprime mortgage meltdown and the worldwide financial crisis it spurned doesn’t get headlines like it used to. But...
  • Blog Post: Thacher Proffitt on The Save New Jersey Homes Act of 2008

    The Save New Jersey Homes Act of 2008 is currently awaiting Governor Corzine's signature. It requires creditors to freeze the introductory rates of certain mortgages for 3 years & defer payment of the additional interest accruing at the fully-indexed rate, in addition to requiring specific disclosures...
  • Blog Post: The End Of The World As We Know It

    Eight or nine months ago when the effects of the collapsing housing bubble finally became serious enough to warrant attention in the mainstream national press, speculation arose as to whether and to what extent the government should intervene in the crisis. At the time fallout seemed limited to overextended...
  • Blog Post: The Congress Strikes Back

    Criticism of Paulson's bailout plan came swiftly after release of the details on Friday. Examples can be found here , here , here , and here . On Monday Congressional Democrats submitted counter-proposals. Key elements include oversight and the acquisition of an equity stake in institutions participating...
  • Blog Post: Ben Bernanke Explains It All

    Like many people I assumed that the Treasury Department, as part of its the bailout plan for the financial industry, would buy up bad debt at less than market value. I wondered how firms would make up for the hole that would leave in their balance sheets. In testimony before the Congress on Tuesday Ben...
  • Blog Post: Agreement on a Bailout Plan

    Thank God for Friday's Presidential debate. It got the two presidential campaigns out of town just long enough for Congressional leaders to reach a consensus on a bail-out plan. It's called the Emergency Economic Stabilization Act of 2008 . It looks like most of the original provisions of the...