Charles Schwab Corp. is suing units of 11 big banks that sold or issued certificates in securitization trusts backed by residential mortgage loans to its bank. The banks named in the complaint filed on July 15 include BNP Paribas, Bank of America, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, Royal Bank of Scotland and Morgan Stanley. In a complaint filed with the Superior Court of California, County of San Francisco, Schwab said it paid the defendants $1.38 billion for 37 certificates in 36 securitization trusts backed by residential mortgage loans. Schwab alleges the defendants made “numerous statements to Schwab about the certificates and the credit quality of the mortgage loans that backed them” and “many of those statements were untrue as to material facts.”
Schwab sues banks over $1.38 billion in RMBS issuance
Most Popular Articles
Latest Articles
Pennymac posts first-quarter profit of $39M
Loan production income shrank in the first quarter, but the company’s servicing business continues to grow
-
DOJ charges one of America’s top LOs in alleged mortgage fraud scheme
-
Top Producer Review: Features, pricing & alternatives
-
A&D Mortgage names new servicing manager
-
HUD aims to help protect communities from extreme heat
-
Freedom Mortgage founder addresses ’extraordinary’ credit profiles, profitability and products