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

Tag Archives: Lehman Brothers Holdings Inc.

Aurora Resolves Mortgage Modification Class-Action Lawsuit for $5.3 Million

A former goliath of the non-prime lending market, Aurora Loan Services, LLC (“ALS”), recently resolved a class-action lawsuit alleging that it fraudulently induced distressed California borrowers to enter into purported “workout” agreements to extract unearned payments. ALS was one of many servicing affiliates of big banks that created, and profited off of, various reduced documentation… Continue Reading

A Time for Reflection: the Fifth Anniversary of Lehman Brothers’ Collapse

Obama claims progress has been made Sunday, September 15, 2013, marked the fifth anniversary of Lehman Brothers’ bankruptcy, the largest in U.S. history. It is widely believed that Lehman’s meltdown set off a domino effect that led to the global financial crisis and proved to be a major contributing cause of the housing market collapse…. Continue Reading

Federal Judges Refuse to Permit “Shotgun” Style Mortgage-Buyback Lawsuits Filed by Lehman Brothers

Lehman unsuccessfully attempted to consolidate repurchase claims Earlier this year, a United States District Court judge for the Southern District of Florida (Judge James Lawrence King) severed and dismissed 7 out of 8 mortgage repurchase claims filed by Lehman Brothers Holdings, Inc. against a residential mortgage originator because Lehman was attempting to demand the repurchase of… Continue Reading

Nationstar Acquires Aurora Bank Servicing Rights

Acquisition May Be of Interest to Originators/Correspondents Nationstar Mortgage LLC, an indirectly-held, wholly-owned subsidiary of Nationstar Mortgage Holdings Inc., has completed its acquisition of approximately $63.7 billion in residential mortgage servicing rights from Aurora Bank FSB (f/k/a Lehman Brothers Bank) and its wholly owned subsidiary Aurora Loan Services LLC , a subsidiary of Lehman Brothers… Continue Reading

Residential Capital Files Bankruptcy: Part 2 of 2

ResCap and Ally Will Not Challenge Repurchase Claims In Part 1 of this series, we discussed the circumstances leading to the bankruptcy filing of Residential Capital (ResCap) , a residential mortgage loan originator and a subsidiary of Ally Financial Inc. (formerly GMAC.) In anticipation of the bankruptcy filing, ResCap’s board had approved the bankruptcy filing… Continue Reading

Lehman: “You Gotta Know When”

On May 3, 2012, U.S. District Judge Lewis Kaplan in Manhattan refused to allow insurers for former officers and directors of Lehman Brothers Holdings Inc. to settle a fraud lawsuit for $90 million. The lawsuit had been brought as a class action by shareholders of Lehman Brothers. Judge Kaplan was not satisfied with the independent… Continue Reading