Posts belonging to Category Commercial Mortgage Backed Securities

No Market is Immune to the Real Estate Crash


First it was Florida and the Southwest watching their housing prices plummet, now Seattle, Atlanta and Minneapolis have followed suit. The ongoing correction has yet to end as the housing market goes into a double-dip cycle. Mortgage applications are at a 15-year low. These developments do not bode well for the rest of the winter […]

Falling Real Estate Prices Threaten Economic Recovery


Real estate prices across the country are dropping even further according to the S&P/Case-Shiller Index. As reported on by staff writer Les Christie, recent results show prices in all 20 key cities dropped 1.3% for an annualized decline of 15%. Six markets reached their lowest price levels since the beginning of the bust in […]

The State of New York is Investigating Bond Insurers’ Claims that They were Defrauded by Wall Street Firms


A public hearing was scheduled by New York state lawmakers to “gather information on whether certain banks intentionally defrauded bond insurers about the creditworthiness of subprime mortgage-backed securities,” according to the Wall Street Journal. Joseph Morelle, who is the chairman of the New York State Assembly, said that he doesn’t “want to get ahead of […]

Mortgage Problems Continue to Haunt Bank of America


The biggest lender in the United States, Bank of America Corp., may have to book a charge totaling $8.5 billion in costs stemming from disputes over faulty mortgages and mortgages securities, according to a article written by Hugh Son. The company may take the charge in the fourth quarter of this year and the […]

Are Wall Street Banks Concealing Their True Exposure to Mortgage Securities Problems


Bank of America has agreed to pay $2.6 billion to settle charges that Countrywide (which BofA acquired) made material misrepresentations about home loans it sold to Fannie Mae and Freddie Mac, according to articles in the New York Times by Gretchen Morgenson (“$2.6 Billion to Cover Bad Loans: It’s a Start”) and by Steve […]

Monoline Insurer MBIA Accuses Wall Street Banks of Fraud Regarding Mortgage-Backed Securities


The future of MBIA, the monoline insurer of mortgage-backed securities and municipal bonds, among other things, is in peril and likely dependent on the outcome of litigation, according to Floyd Norris in his Jan. 6 New York Times article, “MBIA Fights Banks for Its Life.” Standard & Poors reportedly downgraded MBIA to junk status and […]

Institutional Investors Sue to Recover Mortgage-Backed Securities Losses


Real Estate Mortgage Investment Conduits, or Remics, are complex mortgage-backed securities that were pitched to investors as providing favorable tax treatment on the income generated by the underlying loans. Instead, they have generated large losses for big investors during the economic crisis. But gaps and defects in the complex paper trail have provided a potential […]

Institutional Investors Begin Fulfilling Fiduciary Duties by Filing Claims to Recoup Subprime Losses


Amid rising losses in mortgage-backed securities, institutional investors in mortgage securities are teaming up to recover their losses, according to Ruth Simon’s Wall Street Journal article, “Mortgage Losses Build Team Spirit.” Investigations by state regulators into the “mortgage mess” and growing awareness of their fiduciary duties to shareholders and retail investors is spurring the spike […]

Wall Street Banks Seek to Avoid Responsibilty for Checking Out Mortgage Securities They Sell to the Public


Faced with proposed new regulations for mortgage-backed securities designed to prevent another financial crisis, some Wall Street banks are saying that they should have no responsibility “to undertake any sort of credit analysis” when creating and selling mortgage-backed securities, and that they have no ability to do that, according to Floyd Norris, a commentator on […]