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Mortgage Crisis Watch Business and legal issues affecting: loan repurchases | mortgage-backed securities | mortgage insurance

Tag Archives: CitiGroup

Big Banks Fail 2012 Fannie Mae Star Program

By Philip R. Stein on Posted in Fannie Mae/Freddie Mac, Too Big to Fail

Fannie’s Star Program reveals big banks failed to meet minimum mortgage servicer performance requirements According to a report released Tuesday by Fannie Mae, the big banks who love to act like “injured innocents” when it comes to making mortgage repurchase and indemnification demands on loan originators had their own substantial problems servicing the loans that they… Continue Reading

Judge Rakoff v. SEC and Citigroup

By Russell Koonin and Robert Siegel on Posted in Legislation/Regulation, Residential Mortgage-Backed Securities (RMBS)

Judge Rakoff Not Going Out Quietly In a story we’ve been following since the outset, on Monday, Judge Rakoff filed his brief before the Second Circuit Court of Appeals. It is not every day that you see a federal judge litigating against two parties who were theoretically adverse before him. But that is precisely the… Continue Reading

Strange Bedfellows – SEC v. CitiGroup Litigation

By Russell Koonin and Philip R. Stein on Posted in Legislation/Regulation, Too Big to Fail

SECOND CIRCUIT COURT OF APPEALS ISSUES STAY IN LITIGATION BETWEEN S.E.C. AND CITIGROUP In a sharply worded opinion, the Second Circuit Court of Appeals issued a stay to the district court proceedings in S.E.C. v. Citigroup, in the Southern District of New York. There, Judge Rakoff had previously refused to approve a proposed $285 million settlement… Continue Reading

Big Banks Increase Reserves in Anticipation of Buyback Demands

By Philip R. Stein and Andrew Pompa on Posted in Fannie Mae/Freddie Mac, Mortgage Repurchase, Too Big to Fail

The big banks are gearing up for an aggressive buyback season. We’ve recently learned that CitiGroup and Wells Fargo have set aside their largest reserves to date to cover new “repurchase” issues. Many expect insistent demands to rain down from Fannie and Freddie, as the mortgage giants face looming statute of limitations cut-offs for such claims.