- New York state appeals court affirmed denying dismissal of claims against Morgan Stanley for fraud. Plaintiff bought $17 million in high-risk notes tied to residential mortgage-backed securities in a $500 million collateralized debt obligation that eventually were wiped out.
- Quicken Loans’ suit was dismissed against the U.S. government for its use of the False Claims Act for failure to state a claim. This suit was brought to prevent a costly enforcement action.
- JP Morgan has settled to pay $48 million fine for shoddy mortgage servicing practices in response to allegations from the Office of the Comptroller of the Currency (OCC). (Consent Order; Termination).
- Credit Suisse AG has settled for $110 million in class action alleging the use of misleading financial disclosure documents that caused the plaintiffs to purchase $1.6 billion in bad mortgage-backed securities.
Author Archives: Shea Cunningham
Wednesday’s Academic Roundup
- House Prices and Job Losses, Gabor Pinter, Bank of England Working Paper No. 569.
- The Dynamics of Adjustable-Rate Subprime Mortgage Default: A Structural Estimation, Hanming Fang, You Suk Kim & Wenli Li, PIER Working Paper No. 041.
- High and Low Activity Spells in Housing Markets, Eric Smith, CESifo Working Paper Series No. 5601.
- House Prices, Local Demand, and Retail Prices, Johannes Stroebel & Joseph Vavra, CESifo Working Paper Series No. 5607.
- Anticipation, Distance, Elevation: Multi-Dimensional Gradients in Urban Spatial Modeling, Victor Yifan Ye & Charles Becker, Economic Research Initiatives at Duke (ERID) Working Paper No. 202.
- Capital Requirements, Risk Shifting and the Mortgage Market, Arzu Uluc & Tomasz Wieladek, Bank of England Working Paper No. 572.
- The Fair Market Value of Public Resources, Bruce R. Huber, California Law Review, Vol. 103, No. 6, 2015.
Monday’s Adjudication Roundup
- The U.S. Department of Justice has filed suit against Trump Village Section IV in Brooklyn for allegedly violating the Fair Housing Act by not allowing emotional support dogs to live with their owners who suffered from disabilities.
- Ocwen Financial Corp. requests that a federal judge consolidate two False Claims Act suits alleging it gave false information to a federal loan program because the suits are identical.
Happy New Year!
“Approach the New Year with resolve to find the opportunities hidden in each new day.” — Michael Josephson
Happy 2016 everyone!
Wednesday’s Academic Roundup
- Mortgage Choice Determinants: The Role of Risk and Bank Regulation, Mardi H. Dungey, Firmin Doko Tchatoka, Graeme Wells & Maria Yanotti, Economic Record, Vol. 91, Issue 295, pp. 417–437, 2015 (Paid Access).
- Subprime Governance: Agency Costs in Vertically Integrated Banks and the 2008 Mortgage Crisis, Claudine Madras Gartenberg & Lamar Pierce, Forthcoming in Strategic Management Journal.
- The Role of Contagion in the American Housing Boom, Anthony A. DeFusco, Wenjie Ding, Fernando V. Ferreira & Joseph Gyourko.
- The Federal Reserve: The Weakest Lender of Last Resort Among its Peers, Hal S. Scott.
Monday’s Adjudication Roundup
- HSBC settles class action by homeowners that claimed the bank received kickbacks for insurance policies on their properties.
- Goldman Sachs, Deutsche Bank and RBS have petitioned the US Supreme Court to consider repose statutes and statutes of limitations extenders that could block a $2.1 billion mortgage-backed securities suit against them.
Wednesday’s Academic Roundup
- Real Estate Price Indices and Price Dynamics: An Overview from an Investment Perspective, David Geltner, Annual Review of Financial Economics, Vol .7, pp. 615–633, 2015.
- Migration and Housing Price Effects of Place-Based College Scholarships, Timothy J. Bartik & Nathan Sotherland, Upjohn Institute, Working Papers, 15-245, 2015.
- Big Data and Big Cities: The Promises and Limitations of Improved Measures for Urban Life, Edward L. Glaeser, Scott Duke Kominers, Michael Luca & Nikhil Naik, HKS Working Paper No. 075.
- The Supply Side of Household Finance, Gabriele Foà, Leonardo Gambacorta, Luigi Guiso, & Paolo Emilio Mistrulli, BIS Working Paper No. 531.
