in News > Residential Mortgage
print the content item


What's a week in mortgage banking without a new lawsuit? The latest litigation comes from Ambac Financial Group Inc., which has filed a lawsuit against JPMorgan Chase & Co. to recover losses from mortgage-backed securities (MBS) made by the former Bear Stearns Cos.

According to a Reuters news report, Ambac lost more than $200 million in claims from seven residential MBS issued by Bear Stearns, which was purchased by JPMorgan Chase in 2008.

"Driven by management's 'Bear don't care' mentality, Bear Stearns perpetrated a massive fraud that deceived investors and financial guarantors, such as Ambac, into believing that the mortgage loans backing its securitizations were originated pursuant to established underwriting guidelines and were therefore of good quality," Ambac said in its lawsuit, which was filed in New York State Supreme Court.

The lawsuit is the second that Ambac has brought against JPMorgan Chase regarding MBS-related losses.


Agfirst_id


Latest Top Stories

Penalties Galore In 'Mortgage Market Football'

'Tis the football season, so relating our mortgage industry makeover attempts (or the lack thereof) to our favorite pastime's rules is timely.


S&P/Case-Shiller: Home Price Appreciation Losing Steam

Nationally, home prices increased 0.2% in August, compared to July; however, most markets are now seeing their annual gains decelerate, due in part to decreased investor activity.


CFPB Flexes Its Regulatory Muscles

The bureau reports that during some recent reviews, auditors found that some mortgage servicers weren't properly overseeing the activities of their third-party vendors, while others had "unfairly delayed permanent loan modifications."


Regulators Approve Final QRM Rule

Final rule eliminates requirement that borrowers must put down 20%.


FHFA Clarifies Rep And Warranty Framework

"We know that the [existing] Representation and Warranty Framework did not provide enough clarity to enable lenders to understand when Fannie Mae or Freddie Mac would exercise their remedy to require repurchase of a loan," said Mel Watt, director of the FHFA.

Urban Lending_id1351
Hse SandyHook
Industry Resource
Orb Mobile
SWBC_id1313
BSI_id1381
Safeguard_id1322
MBATX_id1385