Mortgage underwriters fight securities cases

Miami /
Jul.July 29, 2011 01:30 PM

Bank of America will try today to persuade a California state court judge in San Francisco to dismiss yet another suit that seeks to make it repurchase $19 billion in mortgage-backed securities. If the bank loses out, Bloomberg News said, it may open the floodgates for investors to be able to access internal bank files and correspondence about the loans for pre-trial evidence.

This marks the latest in a slew of investors suing Bank of America and other underwriters such as Goldman Sachs to force the buyback of downgraded mortgage securities, according to Bloomberg News. So far, investors have defeated efforts by the banks to have cases dismissed before trial.

In several rulings over the past few months, a Washington state judge has berated banks for citing faulty data from appraisers or expired statutes of limitation to avoid Federal Home Loan Bank of Seattle’s claims.

“At each milestone it puts additional pressure on the defendant to settle,” said Isaac Gradman, an attorney and managing member of a mortgage-backed securities consulting firm in California. [Bloomberg]


Related Articles

arrow_forward_ios
4238-4276 Northwest 7th Street in Miami, Avison Young’s Michael Fay, John Crotty, David Duckworth, Brian de la Fé, Emily Brais and Berkley Bloodworth
Mixed-use Le Jeune Road dev site heads to market for $17M
Mixed-use Le Jeune Road dev site heads to market for $17M
Vlad Doronin, Len Blavatnik, and 3425 Collins Avenue (Credit: Google Maps, Gesi Schilling, and Mark Neyman / GPO)
Developer of Aman-branded towers in Miami Beach scores $35M loan
Developer of Aman-branded towers in Miami Beach scores $35M loan
Rendering of 57 Ocean and Marcelo Kingston (Credit: DBOX)
57 Ocean in Miami Beach scores $59M construction loan
57 Ocean in Miami Beach scores $59M construction loan
JPMorgan Chase CEO Jamie Dimon (Credit: Win McNamee/Getty Images, Google Maps, iStock)
JPMorgan Chase buys own branch in West Palm
JPMorgan Chase buys own branch in West Palm
South Florida lenders and landlords battle new coronavirus reality
South Florida lenders and landlords battle new coronavirus reality
South Florida lenders and landlords battle new coronavirus reality
Moishe Mana and 25 West Flagler Street
Moishe Mana buys City National Bank building in downtown Miami
Moishe Mana buys City National Bank building in downtown Miami
Brickell Flatiron and Ugo Colombo
Ugo Colombo pays off $236M construction loan for Brickell Flatiron
Ugo Colombo pays off $236M construction loan for Brickell Flatiron
Rendering of Sailboat Bend II
Affordable housing project in downtown Fort Lauderdale lands $27M loan
Affordable housing project in downtown Fort Lauderdale lands $27M loan
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...