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MBS Mortgage Expert Witnesses

March 30, 2012

Litigation concerning mortgage-backed securities (MBS) is heating up in 2012, as the courts are denying many of the defendants’ motions to dismiss. This is leading to a long and involved discovery process, as both sides will have to examine the mortgage loans underlying the securitizations in great detail.

Typically, the complains in these lawsuits allege:

  • The mortgage loan originator did not follow its underwriting guidelines or industry standards
  • Appraisals were artificially increased and did not follow industry appraisal standards, resulting in incorrect loan-to-value percentages.
  • During securitization, the due diligence process of reviewing mortgages for inclusion in the MBS was flawed or ignored.
  • Mortgage terms were modified by servicing organizations and these new terms were not in the best interests of the investors of the MBS.