FHLB Boston

Federal Home Loan Bank of Boston Files RMBS Suit

On April 20, 2011, the Federal Home Loan Bank of Boston (“FHLB Boston”) filed suit against over eighty defendants in Massachusetts state court. FHLB Boston alleges that various underwriters, depositors, individual defendants, and rating agencies made misstatements and omissions in the sale of mortgage-backed securities. The alleged misstatements and omissions include those about the originating banks’ adherence to their stated underwriting guidelines, appraisals, credit ratings, compliance with predatory lending restrictions, and the enforceability of the underlying mortgages. FHLB Boston joins several other Federal Home Loan Banks that already have filed suit in courts throughout the United States over their purchases of mortgage-backed securities, including the Federal Home Loan Banks of Atlanta, Chicago, Indianapolis, Pittsburgh, San Francisco, and Seattle. Complaint.