New York Lawmakers Schedule Hearing Regarding Representations and Warranties Made by Mortgage Originators on Residential Mortgage Backed Securities

The New York State Assembly recently scheduled a public hearing to investigate representations and warranties made by mortgage originators and other financial institutions concerning residential mortgage backed securities and other securitized debt transactions. During the hearing, the Assembly’s Standing Committee on Insurance will elicit testimony regarding claimed misrepresentations and the impact of those claimed misrepresentations on monoline insurers and other third parties. The Committee will also consider whether legislation is needed to protect third parties who insured or have direct exposure to RMBS. The hearing is scheduled for February 16, 2011. Persons wishing to be heard at the hearing have until February 9 to submit the Public Hearing Reply Form. Notice of Public Hearing and Public Hearing Reply Form.