Article Image
News Link • Housing

Foreclosure-Gate: “We found servicer defaults in 100% of the trusts”

Just so it is clear, those 100-150 people who are about to launch lawsuits. And here is the even worse part: Mortgage servicers have been reworking investor-owned loans while not seeking amendments on debts they hold themselves, a misstep investors can use to bypass trustees or force them to act, Bill Frey, the head of Greenwich Financial, said at the conference. The four largest U.S. banks, which service a majority of U.S. mortgages, own more than $400 billion of home-equity debt, Goodman said. “We found servicer defaults in 100 percent of the trusts,” Frey said. Franklin said the group of investors coordinating through his firm’s RMBS Investor Clearing House owns more than 25 percent of so-called voting rights for about 2,600 mortgage securitizations, and more than 50 percent for about 1,150 deals. That's a lot of deals that are about to be put back. Does JPM wish to reconsider its putback charge estimate?

Join us on our Social Networks:


Share this page with your friends on your favorite social network: