Almost a decade has passed since the mortgage foreclosure crisis of 2007–08, but the litigation from the economic fallout of the crisis continues. As one court put it, the 2007 residential mortgage-backed securitizations (RMBS) “earthquake may have subsided, but its aftershocks remain.” Despite six-year statutes of limitations and the fact that most “private label” RMBS were last generated a decade ago, cases in this latest wave typically have been brought by certificate holders, i.e., investors, in RMBS trusts in suits against the trustee; by insurers that allege they were misled into offering insurance for certain RMBS pools; or by parties that are seeking recovery in indemnity for past losses. The previous two annual surveys reported on important developments and trends in RMBS case law. This survey discusses rulings from two trials of RMBS cases that went to judgment during the past year instead of being resolved through settlement, several other rulings of interest, and settlements affecting the RMBS industry.
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