Recent Lawsuits Against Banks Could Signify an Increase in Litigation Pertaining to Mortgage Loans
Residential Funding Company, LLC (RFC), a longtime aggregator of residential mortgage loans and issuer of mortgage-backed securities, has recently filed a series of lawsuits against banks and other financial institutions from whom RFC purchased mortgage loans. The lawsuits, which already number in the dozens, have been filed in federal court in Minnesota and assert that the defendants violated their agreements with RFC by selling loans that were not properly originated or underwritten. RFC contends that it is entitled to have these loans repurchased or, where that is not possible, to recover contractual damages sufficient to make it whole.
Stinson Leonard Street LLP is defending banks and other financial institutions in several of these cases and expects to see a marked increase in litigation involving these types of claims in the foreseeable future. Financial institutions currently facing these lawsuits should seek the assistance of counsel with the experience and expertise necessary to defend these types of claims.
If you have questions about the lawsuits or defense strategies, please contact the individuals listed below or your usual Stinson Leonard Street LLP attorney.
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