When it comes to litigation regarding securitized assets, we wrote the book on it.
In the early days of the housing collapse and global financial crisis of 2008, TFPC attorneys litigated the largest RMBS repurchase case on record at the time, relating to claims against Fremont Investment & Loan. In the process the Firm uncovered and litigated irregularities in loan servicing. TFPC proceeded to work on the cutting edge of public policy issues relating to structured finance and housing markets. These included successfully lobbying against the servicer safe harbor.
Since 2008, TFPC has litigated a diverse range of claims involving securitization, dedicating itself to serving the interests of investors in these trusts. In furtherance of this objective, the Firm devised an innovative method to address certain collective action problems faced by investors in these trusts: the mortgage investors’ clearinghouse. This structure allowed for investors to pool their respective holdings in a way that preserved investors’ interest in confidentiality while allowing claims otherwise devised by so-called “no action clauses” to proceed.
Since 2008 we have litigated the full panoply of activities surrounding securitization, including:
In addition, we have extensive experience with issues that continue to arise in these trusts not necessarily related to initial origination and underwriting of trust collateral. These “post-closing” claims involve not only noticing breaches of representations and warranties and servicing issues, but, crucially, securities administration and enforcement of provisions relating to payment waterfalls provided for in offering memoranda, prospectus supplements, and the like.
While RMBS has been the focus of litigation regarding securitization trusts during the past decade, TFPC has detailed experience in other asset classes that deploy similar structures in raising capital, including CMBS, auto loans, marketplace lending, and student loans.
The firm has successfully settled numerous outstanding lawsuits against Bank of America and its affiliates relating to Countrywide Financial Corp. loan collateral placed in trusts not sponsored by Countrywide or Bank of America. These “non-Countrywide trusts” were not included in the global Countrywide settlement that took place in 2011, and continue to be a source of recovery for investors harmed by Countrywide’s now well-known origination and underwriting practices.
Case No. 27-TR-CV-15-354, Fourth Judicial District Court for Hennepin County, Minnesota (pending).
The firm is currently representing an RMBS investor in this Trust Instruction Proceeding to pursue claims against the Securities Administrator, Wells Fargo, regarding improper allocation of proceeds to investors through the trust waterfall after individual loans within the trust had been modified after the Closing Date.
Case No. 4:14-CV-04166-RAL (D.S.D.) (133 F. Supp. 3d 1203, Sept. 30, 2015) (200 F. Supp. 3d 912, Aug. 8, 2016) (counsel for plaintiff trust).
Index No. 651442/2011 (N.Y. Sup. Ct.) (co-lead counsel for plaintiff Knights of Columbus in pursuing claims against the Trustee).
Case No. 1:09-CV-1656-RMC (D.D.C.) (co-lead counsel for plaintiff trusts).
Case No. 04-CV5452 (PKL), 2007 WL 2324052 (S.D.N.Y. Aug. 13, 2007) (lead counsel for plaintiff trust).
Case No. 3:07-cv-449 (S.D. Ohio) (WHR) (2010 U.S. Dist. LEXIS 12130, Oct. 29, 2010) (2010 U.S. Dist. LEXIS 76664, July 19, 2010) (2009 U.S. Dist. LEXIS 106487, Oct. 27, 2009) (2009 U.S. Dist. LEXIS 74854, Aug. 10, 2009) (2009 U.S. Dist. LEXIS 70514, July 24, 2009) (643 F. Supp. 2d 1014, July 8, 2009) (lead counsel for plaintiff trust).
Case No. 5:08-cv-1125-C (W.D. Okla.) (2011 U.S. Dist. LEXIS 93927, Aug. 23, 2011) (2011 U.S. Dist. LEXIS 35343, Apr. 1, 2011) (2010 U.S. Dist. LEXIS 61612, June 22, 2010) (2010 U.S. Dist. LEXIS 38279, Apr. 19, 2010) (2009 U.S. Dist. LEXIS 107185, Nov. 17, 2009) (lead counsel for plaintiff trust).
No. 8:08–BK–13421–ES (Bankr. C.D. Cal.) (2010 WL 4739439, June 9, 2010) (2009 WL 7146274, Nov. 19, 2009) (2009 WL 7146273, Nov. 16, 2009) (debtor’s securitization counsel).
Case No. 12-12020 MG (Bankr. S.D.N.Y.) (lead counsel for “Talcott Franklin group” of investors).
No. 2:10-cv-00302 MRP (C.D.Cal.); No. 2:12-cv-05125-MRP (C.D.Cal.); No. 2:12-cv-05122-MRP (C.D.Cal.) (counsel for objectors First National Bank of Rochelle and LL Funds).
Case No. 13-C-5693 (N.D. Ill.) (co-lead counsel for plaintiff).
Cause No. 02-02849 (192nd Judicial District Court, Dallas County, Texas) (co-lead counsel for plaintiff trust).
No. 02 Civ. 9916 (S.D.N.Y.) (2005 WL 3046292, Nov. 14, 2005) (2006 WL 177169, Jan. 25, 2006) (2006 WL 1227539, May 5, 2006) (lead counsel for plaintiff trust).
No. 01 CIV. 4389(AGS) (S.D.N.Y.) (2002 WL 181703, Feb. 5, 2002) (2002 WL 31729632, Dec. 5, 2002) (counsel for plaintiff trust).
Cause No. 02-2889 (134th Judicial District Court, Dallas County, Texas) (co-lead counsel for plaintiff trust).
No. 03 CV 7591 (AKH) (S.D.N.Y.) (counsel for defendant Bay View Capital Corp.).
No. 3:06-CV-440-N (N.D. Tex.) (lead counsel for defendant MortgageIT).
We welcome you to contact TFPC or more information about our finance litigation practice.