Items Tagged with 'Mortgage Bond Trustees'


  • Fitch warns mortgage bond investors: Wells Fargo could keep more money for legal fees

    $2.2 billion in RMBS classes now at risk of downgrade
    Earlier this month, Wells Fargo unexpectedly kept $90 million away from residential mortgage-backed securities investors, stating that the bank needed the money to cover legal expenses. Now, Fitch Ratings is warning RMBS investors that Wells Fargo’s move may not be an isolated incident. In fact, it may be a harbinger of similar moves to come in the future.
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  • Wells Fargo withholds $90 million for legal costs, shakes up mortgage bond market

    RMBS deals originated in 2004 and 2005
    Wells Fargo held $90 million back from residential mortgage-backed securities investors recently, saying that it needed the money to cover legal expenses. The legal expenses stem from lawsuits brought by BlackRock and PIMCO. Analysts suggest that the unexpected move could have an impact on the mortgage bond market. Here are the details.
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  • RMBS trustees accept $2.4 billion toxic mortgage settlement from Lehman Brothers

    BlackRock, Goldman Sachs among institutional investors in settlement
    The trustees in a series of residential mortgage-backed securities trusts reached a settlement with the remains of Lehman Brothers Holdings that could be worth more than $2.4 billion over claims that the trust contained toxic mortgages. Also taking part in the settlement are 14 institutional investors, including: BlackRock Financial Management, the Federal Home Loan Bank of Atlanta, and Goldman Sachs Asset Management.
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  • Ocwen cleared of wrongdoing in multibillion dollar mortgage bond fight

    Faced allegations of negligence from bond investors, including BlackRock, Pimco
    Early in 2015, a group of mortgage bond investors that reportedly included BlackRock, MetLife, and Pimco accused Ocwen Financial of violating its duties as a mortgage servicer by failing to properly collect payments on $82 billion of home loans, thereby costing the investors $26 billion. Now, after a yearlong independent investigation found no evidence of the litany of allegations made by the investors, Ocwen is off the hook.
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  • Finally: $8.5B Countrywide mortgage bond settlement gets green light

    Payouts set to reach burnt investors as soon as June
    Ending a legal quagmire that stretched back to 2011, investors are finally set to receive their money from an $8.5 billion settlement involving Bank of America, mortgages originated by its Countrywide unit, and the Bank of New York Mellon, which acted as the trustee for the mortgage bond investors.
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  • Ocwen fires back at “disingenuous” charges of negligence

    Accuses mortgage bond investors of being "pro-foreclosure"
    Ocwen Financial is doubling down in its fight against a group of mortgage bond investors that accused the nonbank of failing to properly collect payments on mortgage loans and breaching its bond covenants, charging the investors, which include BlackRock, MetLife, and PIMCO, of having a “pro-foreclosure, anti-modification” agenda.
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  • Things at Ocwen just went from bad to much, much worse

    Embattled company hit with an avalanche of bad news
    Just when it looked Ocwen Financial may finally be getting some good news, the nonbank was hit with an avalanche of bad news. A new report from Compass Point says that Ocwen was just terminated as servicer on two RMBS deals, and worst of all, Ocwen now stands accused of costing mortgage bond investors $26 billion.
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  • HLSS and Ocwen escalate fight against mortgage negligence claims

    Accuse hedge fund of attempting to undermine Ocwen’s stock price
    It appears that Home Loan Servicing Solutions and its associated company, Ocwen Financial, take the claims that they breached their mortgage bond covenants quite seriously. The companies are again accusing BlueMountain Capital Management of attempting to "undermine" Ocwen's stock price, given BlueMountain's short position in Ocwen.
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  • Home Loan Servicing Solutions fires back at mortgage-negligence claims

    Ocwen associate answers charges from hedge fund
    Home Loan Servicing Solutions is joining with associate Ocwen Financial, in the fight against investors who claimed that the companies breached their mortgage bond covenants, and is accusing the investors of attempting to profit on their stock holdings in HLSS as opposed to actually caring what happens with the mortgage bonds.
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