Comptroller in Charge of $106 Billion NYC Pension Plans Requests Major Lenders to Review Lending and Foreclosure Procedures
New York City Comptroller, John C. Liu, who is in charge of $106 billion worth of NYC Pension Plans, has requested Citigroup (C), J.P. Morgan (JPM), Bank of America (BAC) and Wells Fargo (WFC), to conduct their own independent audits of their mortgage lending and foreclosure practices. Upon completion, they are to report their findings along with their recommendations.
As recently as November 5, 2010, a Wall Street Journal article reported that each of these financial firms were facing a plethora of lawsuits over alleged misstatements or omissions in their underwriting of residential mortgage backed securities (MBS), which were disclosed in their November quarterly regulatory filings. Individual investors and institutional investors have lost massive amounts of money in mortgage backed securities. These mortgage backed securities are backed by the residential mortgages that make up the pool and if the underwriting of the original loans was sloppy, then the risk involved for the investors is multiplied. Because of this, attorneys general in every state have initiated investigations into the underwriting and foreclosure procedures of the nation’s largest lenders. More details will be forthcoming in months ahead as the results of the audits surfaces.
If you have suffered losses in mortgage backed securities (MBS), contact our securities law firm for a confidential, no obligation consultation at 1-800-259-9010.