Ally

FDIC Files Three RMBS Lawsuits as Receiver for a Texas Bank

On August 17, the FDIC, in its capacity as receiver for Texas-based Guaranty Bank, filed three actions in Texas state court arising out of the bank’s alleged investments in 36 RMBS certificates totaling $5.4 billion in face value.  In all three suits, the FDIC alleges that the defendant banks violated the Texas Securities Act and the Securities Act of 1933 by making material misrepresentations and omissions in offering documents.  The FDIC seeks a combined total of at least $2.1 billion, plus attorneys’ fees and costs.

Complaint: FDIC v Ally Securities, et al. 
Complaint: FDIC v Countrywide Securities Corp, et al. 
Complaint: FDIC v J.P. Morgan Securities, et al.

Fed Releases Citi and HSBC Mortgage Servicing and Foreclosure Action Plans

On May 24, the Fed released action plans for Citigroup and HSBC to correct alleged deficiencies in residential mortgage loan servicing and foreclosure processing. The Fed also released the engagement letter between Ally and the independent contractor retained to review foreclosures that were processed in 2009 and 2010. Fed Release.

Mortgage Servicing and Foreclosure Consent Judgments Approved

On April 4, U.S. District Court Judge Collyer approved the previously announced consent judgments resolving claims by by the DOJ and 49 state AGs against Ally, Bank of America, Citi, JPMorgan and Wells Fargo relating to alleged mortgage servicing and foreclosure practices.  Ally Financial Consent Judgment.  Bank of America Consent Judgment.  Citigroup Consent Judgment.  JP Morgan Consent Judgment.  Wells Fargo Consent Judgment.

Attorneys General Complaint on Mortgage Practices

On March 12, a complaint was filed in the U.S. district court for the District of Columbia by the DOJ and the attorneys general of 49 states and the District of Columbia against Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally.  The complaint, which was filed as part of the $25 billion mortgage servicing and foreclosure settlement entered into on February 9, contains allegations of: (i) unfair and deceptive loan servicing consumer practices; (ii) unfair and deceptive foreclosure processing consumer practices; (iii) unfair and deceptive loan origination consumer practices; (iv) violations of the False Claims Act; (v) violation of FIRREA; (vi) violation of the Servicemembers Civil Relief Act; and (vii) bankruptcy misconduct.  Consent judgments implementing the terms of the February 9 settlement agreement were also filed in the U.S. district court in Washington, D.C.  Complaints and Settlements.  Orrick Alert on the February 9 Settlement.

Fed Mortgage Loan Servicing Action Plans

On March 8, the Fed released action plans from HSBC, Ally and IMB HoldCo. to correct alleged deficiencies in residential mortgage loan servicing and foreclosure processing.  The Fed also released the engagement letter between HSBC and the independent consultant retained to review foreclosures that were in process in 2009 and 2010.  Fed Release.  Action Plans and Engagement Letter.