Feds Sue the Banks for Foreclosure Fraud: What Will Be Impact on Florida Real Estate? It Doesn't Help.


It's already happened: the Federal Housing Finance Agency (FHFA) has filed suit against many of the nation's top banks over alleged bad acts involving mortgage-backed securities, i.e., ForeclosureGate. (Read the agency press release here.)

The question is -- what are the consequences?

Specifically, here is what's happened: the following big name financial institutions have been sued by the federal government - as well as individuals that include not only some of the bank's top officers but also some of the defendant lenders' unaffiliated lead underwriters -- for alleged violations of (1) the Securities Act of 1933, a federal claim for damages that gets these cases filed in federal court as well as (2) analogous claims under state securities law and (3) assorted tort claims under state law including negligent misrepresentation and/or common law fraud.

Torts, of course, bring with them the possibility of compensatory (punitive) damages. These banks and bankers are being sued for intentional bad acts under state and federal law.

Federal and State Law Claims Asserted Against 17 Lenders (and Various Individuals) by the FHFA

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Administrative Agency Updates, Business Torts Updates, Finance & Banking Updates, Residential Real Estate Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Rosa Eckstein Schechter, Eckstein Schechter Law | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »