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Structured Finance Litigation Blog

Category Archives: Bank of New York Mellon

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RMBS Investors Take New Tack, File Derivative Actions Against Trustees

Posted in Bank of New York Mellon, BlackRock, Citibank, Deutsche Bank National Trust, DZ Bank, HSBC Bank USA, Institutional Investors, PIMCO, Prudential, Trustees, U.S. Bank National Association, Wells Fargo National Association

On June 18, 2014, a number of large institutional investors – including BlackRock, PIMCO, Prudential, and DZ Bank – sued six residential mortgage-backed securities (RMBS) trustees in New York state court for breaching their fiduciary duties and failing to force mortgage originators and RMBS issuers to repurchase defective loans. The trustees named include Bank of… Continue Reading

Bank of America Settles FGIC RMBS Litigation for $950 Million

Posted in Bank of America, Bank of New York Mellon, Bond Insurers, Countrywide Financial, Financial Guaranty Insurance Co. (FGIC), Investment Banks/Deal Sponsors, Trustees

On April 16, 2014, Bank of America and Financial Guaranty Insurance Company (FGIC) announced that they had reached a comprehensive settlement concerning nine second-lien residential mortgage-backed securitizations sponsored by Countrywide Home Loans, Inc., for which FGIC provided financial guaranty insurance. Financial Guaranty sued Countrywide and its successor, Bank of America, in New York state court… Continue Reading

Court Approves Bank of America’s $8.5 Billion RMBS Settlement

Posted in AIG, Bank of America, Bank of New York Mellon, Countrywide, Institutional Investors, Investment Banks/Deal Sponsors, Mortgage Originators, Trustees

On January 31, 2014, a court in New York approved Bank of America’s proposed $8.5 billion settlement designed to resolve nearly all of its legacy Countrywide-issued first-lien residential mortgage-backed securitization (RMBS) exposure. Bank of America agreed to the settlement in June 2011, and had the support of a group of 22 investors. But AIG led… Continue Reading

Court Allows BNY Mellon Putback Action to Proceed Against GE Mortgage

Posted in Bank of New York Mellon, GE Mortgage Holdings LLC, Mortgage Originators, Trustees, WMC Mortgage Corporation

BNY Mellon Against GE MortgageOn January 14, 2014, a federal court in New York allowed Bank of New York Mellon to pursue putback claims against GE Mortgage Holding, LLC in connection with a $900 million residential mortgage-backed security (RMBS). Bank of New York Mellon, in its capacity as trustee for a pool of loans known… Continue Reading

Court Allows BNY Mellon To Proceed With RMBS Putback Action Against JPMorgan, WMC Mortgage

Posted in Bank of New York Mellon, Investment Banks/Deal Sponsors, JPMorgan, Mortgage Originators, Trustees, WMC Mortgage Corporation

On November 22, 2013, a New York state court allowed Bank of New York Mellon, in its capacity as trustee for a pool of loans known as J.P. Morgan Acquisition Trust, Series 2006-WMC4, to proceed with a lawsuit against WMC Mortgage and JPMorgan in connection with a $1.9 billion residential mortgage securitization. Bank of New… Continue Reading

FHFA, NY and Delaware AGs Drop Objections to Bank of America $8.5 Billion Settlement

Posted in Bank of America, Bank of New York Mellon, Countrywide, Delaware Attorney General, Federal Housing Finance Agency, Investment Banks/Deal Sponsors, Mortgage Originators, New York Attorney General, Regulators/Government Entities, Trustees

On May 3, 2013, the Federal Housing Finance Agency (FHFA) and the attorneys general of New York and Delaware dropped their objections to Bank of America’s $8.5 billion proposed settlement with Bank of New York Mellon regarding Countrywide residential mortgage-backed securities (RMBS). The proposed settlement attempts to resolve nearly all of Bank of America’s legacy… Continue Reading

Several Intervening Investors Withdraw Objections To Bank Of America’s $8.5 Billion Settlement

Posted in Bank of America, Bank of New York Mellon, Countrywide, Federal Home Loan Bank of San Francisco, Institutional Investors, Investment Banks/Deal Sponsors, Maine State Retirement System, Mortgage Originators, Pension Trust Fund for Operating Engineers, Trustees, Vermont Pension Investment Committee, Washington State Plumbing & Pipefitting Pension Trust

On April 30, 2013, and May 1, 2013, several investors requested that they be permitted to withdraw their objections to Bank of America’s $8.5 billion settlement with Bank of New York Mellon regarding Countrywide residential mortgage-backed securities (RMBS). The proposed settlement attempts to resolve nearly all of Bank of America’s legacy Countrywide-issued first lien RMBS… Continue Reading

First Department Affirms Dismissal of Dutch Insurer’s $85.9 Million CDO Lawsuit

Posted in ASR Nederland NV, Bank of New York Mellon, Institutional Investors, Investment Banks/Deal Sponsors, Swiss Re Financial Products Corp., Trustees

On January 24, 2013, a New York state appeals court affirmed a lower court’s decision to dismiss a lawsuit that Dutch insurer ASR Nederland NV (ASR) filed against Swiss Re Financial Products Corp. (Swiss Re) and Bank of New York Mellon Corp. (BNY Mellon) in connection with a collateralized debt obligation (CDO) known as Breithorn…. Continue Reading

BNY Mellon Files Putback Action Against WMC Mortgage and JPMorgan

Posted in Bank of New York Mellon, JP Morgan Chase, Uncategorized, WMC Mortgage Corporation

On December 20, 2012, Bank of New York Mellon, in its capacity as trustee for a pool of loans known as J.P. Morgan Mortgage Acquisition Trust, Series 2006-WMC4, filed a lawsuit in New York state court against several entities, including WMC Mortgage and JPMorgan, alleging that the defendants failed to repurchase or “putback” residential mortgages… Continue Reading

BNY Mellon Files Putback Action Against WMC Mortgage and GE Mortgage Holdings

Posted in Bank of New York Mellon, GE Mortgage Holdings LLC, Mortgage Originators, Trustees, WMC Mortgage Corporation

On August 21, 2012, Bank of New York Mellon, in its capacity as trustee for a pool of loans known as GE-WMC Mortgage Securities Trust 2006-1, filed a lawsuit in New York state court against WMC Mortgage and GE Mortgage Holdings, alleging that the defendants failed to repurchase or “putback” approximately $680 million in residential… Continue Reading

Walnut Place Drops Objection to Bank of America’s $8.5 Billion RMBS Settlement

Posted in Bank of America, Bank of New York Mellon, Institutional Investors, Investment Banks/Deal Sponsors, Trustees, Walnut Place LLC

On July 23, 2012, a court granted Walnut Place’s motion to withdraw its objection to Bank of America’s $8.5 billion settlement with Bank of New York Mellon regarding claims related to Countrywide residential mortgage-backed securities (RMBS). The investor group known as Walnut Place offered no reason for its withdrawal, but its motion comes just a… Continue Reading

Court Allows New York and Delaware AGs to Intervene in Bank of America MBS Settlement

Posted in Bank of America, Bank of New York Mellon, Delaware Attorney General, New York Attorney General

On June 6, 2012, a New York state judge granted a motion by the Attorneys General of New York and Delaware to intervene in the litigation relating to Bank of America’s proposed $8.5 billion mortgage-bond settlement with the Bank of New York Mellon. The proposed settlement attempts to resolve nearly all of Bank of America’s… Continue Reading

Oral Argument in Walnut Place’s Appeal of Dismissed Action Against Bank of America

Posted in Bank of America, Bank of New York Mellon, Walnut Place LLC

On June 6, 2012, New York’s Appellate Division, First Department, heard oral arguments in Walnut Place’s appeal of a decision dismissing its case against Bank of America. Walnut Place filed its complaint in February 2011, alleging that Countrywide Financial, now owned by Bank of America, misrepresented the quality of loans backing $1.1 billion in RMBS,… Continue Reading

Justice Kapnick Gives Investors Partial Access to Bank of America Settlement Communications

Posted in Bank of America, Bank of New York Mellon, Countrywide Financial

On May 8, 2012, New York state judge Barbara R. Kapnick endorsed a proposal to allow investors who objected to Bank of America’s proposed $8.5 billion RMBS settlement to review some of the communications related to the settlement agreement, according to Reuters. The proposed settlement would resolve nearly all of Bank of America’s legacy Countrywide-issued… Continue Reading

Justice Kapnick Keeps Bank of America Settlement As Article 77 Proceeding, Suggests Middle Road Regarding Discovery

Posted in AIG, Bank of America, Bank of New York Mellon, Delaware Attorney General, Institutional Investors, Investment Banks/Deal Sponsors, New York Attorney General, Regulators/Government Entities, Trustees

At a hearing on April 24, 2012, New York state Supreme Court Justice Barbara R. Kapnick denied a motion to convert Bank of America’s proposed $8.5 billion mortgage-bond settlement from an Article 77 proceeding to a plenary hearing. Objectors to the proposed settlement, including AIG, moved to convert the case from an Article 77 proceeding… Continue Reading

New York AG Amends Pleading to Intervene in $8.5 Billion Bank of America Settlement, Drops Claims against Trustee Bank of NY Mellon

Posted in Bank of America, Bank of New York Mellon, Countrywide Financial, Delaware Attorney General, New York Attorney General

On April 10, 2012, New York Attorney General Eric Schneiderman filed an amended pleading to intervene in Bank of America’s proposed 8.5 billion mortgage-bond settlement. In the amended pleading, Schneiderman’s office argues, as it did in its initial pleading, that the settlement is an unfair and inadequate resolution of investors’ claims against Bank of America…. Continue Reading

Federal Judge Allows Investors To Sue BNY Mellon Under Trust Indenture Act

Posted in Bank of New York Mellon, Countrywide Financial, Investment Banks/Deal Sponsors, Trustees

On April 3, 2012, a federal judge allowed investors to proceed with claims brought under the Trust Indenture Act, in a putative class action that accused The Bank of New York Mellon (BNY Mellon) of failures in its oversight of mortgage-backed securities trusts.  The lawsuit, filed by four pension funds in August 2011, relates to… Continue Reading

Bank of America Wins Dismissal of “Premature” Walnut Place Lawsuit

Posted in Bank of America, Bank of New York Mellon, Countrywide Financial, Institutional Investors, Investment Banks/Deal Sponsors, Mortgage Originators, Trustees, Walnut Place LLC

On March 29, 2012, New York State Supreme Court Justice Barbara Kapnick dismissed a lawsuit against Bank of America over $1.1 billion in residential mortgage-backed securities (RMBS). Plaintiffs, an investor group known as Walnut Place LLC, filed their complaint in New York state court in February 2011, alleging that Countrywide Financial, now owned by Bank… Continue Reading

Second Circuit Sends BofA Settlement Back to State Court Under CAFA’s “Securities Exception”

Posted in Bank of America, Bank of New York Mellon, Institutional Investors, Investment Banks/Deal Sponsors, Trustees, Walnut Place LLC

On February 27, 2012, the Second Circuit Court of Appeals remanded to New York state court Bank of America’s proposed $8.5 billion settlement with holders of Countrywide mortgage-backed securities. The proposed settlement attempts to resolve nearly all of Bank of America’s legacy Countrywide-issued first-lien residential mortgage-backed securitization (RMBS) repurchase exposure, and involves 530 RMBS trusts… Continue Reading

Investors Ask Trustee to Investigate $19B in Wells Fargo RMBS

Posted in Bank of New York Mellon, BlackRock, Citigroup, HSBC Bank USA, Institutional Investors, Investment Banks/Deal Sponsors, JP Morgan Chase, PIMCO, Trustees, U.S. Bank National Association, Wells Fargo

On January 5, 2012, a group of institutional investors, including BlackRock and PIMCO, issued instructions to U.S. Bank and HSBC Holdings, in their capacities as trustees, to investigate the mortgages underlying $19 billion in residential mortgage-backed securities (“RMBS”) that Wells Fargo issued. As a group, the requesting bondholders hold more than 25 percent of the… Continue Reading

Bank of America Seeks Dismissal of Walnut Place Lawsuit

Posted in Bank of America, Bank of New York Mellon, Countrywide Financial, Institutional Investors, Investment Banks/Deal Sponsors, Mortgage Originators, Trustees, Walnut Place LLC

At a hearing on December 8, 2011, Bank of America Corp. presented its arguments for why an investor’s state court action relating to the bank’s involvement in mortgage-backed securities should be dismissed. The lawsuit, brought by Walnut Place LLC in February 2011, alleged that subsidiaries of Countrywide, which Bank of America subsequently acquired, misrepresented the… Continue Reading

Second Circuit To Expedite Review of Remand Motion In Bank of America Settlement

Posted in AIG, Bank of America, Bank of New York Mellon, BlackRock, Countrywide Financial, Institutional Investors, Investment Banks/Deal Sponsors, Mortgage Originators, Trustees, Walnut Place LLC

On November 30, 2011, the Second Circuit Court of Appeals agreed to expedite its review of Bank of New York Mellon’s (BNY Mellon’s) motion to remand to state court Bank of America’s $8.5 billion settlement with holders of Countrywide mortgage-backed securities. BNY Mellon, the trustee holding the securities, moved to remand the settlement back to… Continue Reading

NY and Delaware AGs Allowed to Intervene In BofA Settlement Litigation; Homeowners Not Allowed to Intervene

Posted in Bank of America, Bank of New York Mellon, Delaware Attorney General, Investment Banks/Deal Sponsors, New York Attorney General, Regulators/Government Entities, Trustees

On November 21, 2011, Judge Pauley of the Southern District of New York granted the Attorneys General of Delaware and New York the right to intervene in a proposed settlement between Bank of America and thousands of claimants over billions of dollars in residential mortgage-backed securities. The $8.5 billion settlement has been the source of… Continue Reading

BofA’s $8.5 Billion RMBS Settlement Still a Federal Matter

Posted in AIG, Bank of America, Bank of New York Mellon, Institutional Investors, Investment Banks/Deal Sponsors, New York Attorney General, Regulators/Government Entities, Walnut Place LLC

On October 19, 2011, U.S. District Judge William H. Pauley III of the Southern District of New York denied a motion by Bank of New York Mellon (BNY Mellon) to remand the proceedings seeking approval of its proposed $8.5 billion settlement with Bank of America (BofA). The proposed settlement attempts to resolve nearly all of… Continue Reading