MBS | Bank Loan Bundling Investigated by Biden-Schneiderman: Mortgages

“I can’t imagine a better securities law claim than to say that you represented that these were mortgage-backed securities when in fact they were backed by nothing.”


Bank Loan Bundling Investigated by Biden-Schneiderman: Mortgages

New York Attorney General Eric Schneiderman and Delaware’s Beau Biden are investigating banks for failing to package mortgages into bonds as advertised to investors, three months after a group of lenders struck a nationwide $25 billion settlement over foreclosure practices.

The states are pursuing allegations that some home loans weren’t correctly transferred into securitizations, undermining investors’ stakes in the mortgages, according to two people with knowledge of the probes. They’re also concerned about improper foreclosures on homeowners as result, said the people, who declined to be identified because they weren’t authorized to speak publicly.

The probes prolong the fallout from the six-year housing bust that’s cost Bank of America Corp., JPMorgan Chase & Co. (JPM) and other lenders more than $72 billion because of poor underwriting and shoddy foreclosures. It may also give ammunition to bondholders suing banks, said Isaac Gradman, an attorney and managing member of IMG Enterprises LLC, a mortgage-backed securities consulting firm.

Rest from Bloomberg here…



4 Responses to “MBS | Bank Loan Bundling Investigated by Biden-Schneiderman: Mortgages”
  1. Fury says:

    this pisses me off.
    schneiderman and biden are always trying to protect the investors?

    what about us?

    we INVESTED in our homes and were taken to the cleaners by the Bank con artists
    and wall street hucksters.

    AGs, do something to right this terrible wrong.

    use your subpoena power and stop these criminals once and for all.
    use your power to help defrauded homeowners get full restitution for their losses.

    you are the top cop.

    enforce the law!

  2. Bob Sublime says:

    readdocs, you are right. This all smells of moves for political gain and of no real substance, sort of like Obama’s “mortgage relief” programs, which were all designed by the banks for their own aggrandizement and have been miserable failures for American homeowners. Pardon me for being cynical, but it appears that there is no “there” there.

  3. Fed up says:

    Is the rumor true Joe Biden had unprotected sex with JPM?
    If he did he certainly contracted syphilis from a known carrier his poor little socialist brain is rotting away.
    Perhaps nurse Lisa Epstein can come to the rescue and administer a massive dose of antibiotics.
    if the criminally insane sickos don’t respond there is aways euthanasia.

  4. readdocs says:

    OMG. Biden being purported to being an expert at anything? Puleeze!
    Look, just about everyone who is involved, including the so called investigations,
    is involved in the money trail!
    The only thing that has changed is there are MORE foxes in the hen house!

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