in News > Residential Mortgage
print the content item


Germany's HSH Nordbank AG has filed lawsuits against two units of Barclays PLC, claiming that Barclays intentionally misrepresented the quality of loans underlying the sale of $46 million in residential mortgage-backed securities (RMBS).

The Wall Street Journal reports that the lawsuits are the latest legal challenge by HSH against Barclays. In February, HSH filed a separate summons against Barclays that stated it was planning to sue over another $122.7 million RMBS offering.

"For each of the securitizations, the offering documents materially overstated the percentage of loans that were owner-occupied, and thus materially understated the certificates' degree of risk," said HSH in its new lawsuit.

HSH also claims that Barclays did not assign all of the mortgages to trusts backing the RMBS.

"Indeed, without such assignment of the mortgages into the trusts, these so-called 'mortgage-backed securities' were not actually backed by mortgages," HSH continued.  "Plaintiffs would not have purchased these certificates had they known they were not backed by collateral or the notes."




Latest Top Stories

The 'Widespread Contagion' Of Foreclosure Is Now Contained

RealtyTrac says in its midyear report that foreclosure activity has dwindled back down to historic levels and that it is on track to continue the pace.


New Housing Finance Reform Bill Introduced In Congress

Three congressmen are taking a new crack at balancing public and private involvement in housing finance.


Julian Castro Confirmed As HUD Secretary

The 39-year-old, third-term mayor of San Antonio will replace current HUD Secretary Shaun Donovan, who will next lead the White House Office of Management and Budget.


'Middle Ground' GSE Reform Proposal Would Keep Fannie, Freddie Alive

Proposal provides an explicit government guarantee "but taxpayer money will be protected through adequate private-sector capital and accurate pricing of government reinsurance."


Could Supreme Court Decision Lead To Revocation Of CFPB Rules?

"The Supreme Court decision on the Cordray recess appointment casts doubt that actions taken by the CFPB, via its first and only director, are valid..." said Michelle Garcia Gilbert, managing partner with Tampa, Fla.-based Gilbert Garcia Group.

LenderLive_id1241
Hse SandyHook
Industry Resource
SME Subservicing Directory_id1036
BSI_id
CMBA_id1228
Safeguard_id1295