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

Tag Archives: securities fraud

SEC Investigating ResCap for Possible Mortgage Fraud

The U.S. Securities and Exchange Commission is investigating bankrupt Ally Financial mortgage unit Residential Capital, LLC, for possible misconduct and misrepresentation in its mortgage lending and underwriting practices. The SEC disclosed in court documents on Monday that it formerly commenced an investigation in February of this year to probe possible fraud in the offer and… Continue Reading

Indemnification Rights for Fannie and Freddie Leads to Ironic Defense from SEC Charges

On December 16, 2011, the SEC filed two separate suits charging securities fraud by three former top executives from Fannie Mae and Freddie Mac, respectively. Both suits were filed in the U.S. District Court for the Southern District of New York, and allege that the executives knew and approved of 1) making misleading statements that… Continue Reading