Industry Update: the Future of eClosing and RON

Join industry experts for an in-depth discussion on the future of eClosing and how hybrid and RON closings benefit lenders and borrowers.

DOJ v. NAR and the ethics of real estate commissions

Today’s HousingWire Daily features the first-ever episode of Houses in Motion. We discuss the Department of Justice’s recent move to withdraw from a settlement agreement with the NAR.

Hopes for generational investment in housing fade in DC

Despite a Democratic majority, the likelihood of a massive investment in housing via a $3.5 trillion social infrastructure package appears slim these days. HW+ Premium Content

How Biden’s Neighborhood Homes proposal impacts real estate investors

Dubbed the Neighborhood Homes Tax Credit, the proposal is part of the larger American Jobs Plan legislation — also known as Biden’s infrastructure plan. Here's a look into how it impacts real estate investors.

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Judge approves Goldman Sachs $272 million toxic mortgage settlement

Agreement with Illinois electrical workers' pension fund is 'reasonable'

In August, Goldman Sachs agreed to pay $272 million to settle a lawsuit brought by an Illinois electrical workers’ pension fund over losses suffered due to alleged misrepresentations of the quality of mortgage loans that backed crisis-era mortgage-backed securities.

On Monday, a federal judge approved the proposed settlement between Goldman Sachs and NECA-IBEW Health & Welfare Fund, an electrical workers' pension fund in Decatur, Illinois, finding it to be “fair, adequate and reasonable,” according to a Bloomberg report.

The settlement stems from a lawsuit filed in 2008, when NECA-IBEW sued Goldman Sachs, arguing that Goldman made false statements or omitted key information regarding the nature of the mortgages it sold into 17 different trusts during 2007.

At the time, HousingWire’s Paul Jackson wrote of the lawsuit:

In the Goldman case, NECA-IBEW alleges that Goldman misled investors on the underwriting standards used by various originators, including — who else? — Countrywide Financial; other claims center on the use of inflated appraisals by originating entities for the trusts. Many of the loans in the trusts named in the lawsuit are of the reduced-doc, no-doc, stated-income variety, which NECA-IBEW says are rife with fraud.

Goldman denied any wrongdoing, challenged NECA-IBEW’s ability to sue over the toxic mortgages, and the case eventually nearly made its way onto the Supreme Court’s docket.

In 2013, the Supreme Court decided not to hear the case after the Second Circuit held that NECA-IBEW can claim standing to sue Goldman over the mortgage bonds, even if some of those claims relate to offerings that parties other than the plaintiff were involved in.

Now, nearly eight years later, the lawsuit is finally nearing the finish line.

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