Philip R. Stein

Firm/Organization: Bilzin Sumberg

Blogs: Mortgage Crisis & Financial Services Watch

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Mortgage Crisis & Financial Services Watch

From RMBS to SLABS: Is History Repeating Itself?

By Philip R. Stein & Kenneth Duvall on April 2, 2019

The fallout from the last financial crisis and recession is far from over. More than a decade after the demise of Lehman and Bear Stearns, among others, litigation continues related to alleged deficiencies in mortgage loans securitized as part of residential mortgage-backed securities (RMBS) offerings. Our firm thus remains extremely busy with, for example, defense of mortgage loan originators and brokers sued for purported breaches of contractual indemnification provisions and representations and warranties — regarding…

Mortgage Crisis & Financial Services Watch

New Second Circuit Statute of Limitations Ruling A Benefit to Loan Originators, Brokers

By Philip R. Stein on February 12, 2019

As originators and brokers of mortgage loans continue to get served with new lawsuits (or threatened with potential suits) related to loans that they conveyed to aggregators prior to the financial crisis of 2008, questions almost inevitably arise as to how this is even possible: aren’t such claims time-barred under the applicable statute of limitations? The answer is more complicated than the originator or broker might have initially thought. It can depend on what state’s…

Mortgage Crisis & Financial Services Watch

New York High Court Rules on Statute of Limitations

By Philip R. Stein & Kenneth Duvall on December 10, 2018

Over the last several years, we have posted several times about whether the statute of limitations bars remedies against lenders (and sometimes sponsors and trustees) of residential mortgages. (See here, here, and here). One of the most important cases in this area has been ACE Sec. Corp., Home Equity Loan Trust, Series 2006–SL2 v. DB Structured Prods., Inc.[1] We had discussed the intermediate appellate court decision in ACE in 2013.…

Mortgage Crisis & Financial Services Watch

Lehman Brothers Seeks to Expand Lawsuits Against Loan Originators

By Philip R. Stein & Enza G. Boderone on October 11, 2018

Last week, Lehman Brothers Holdings Inc. (“LBHI”) filed two new motions in its ongoing Southern District of New York Bankruptcy Court litigation against approximately 130 loan originators and brokers: (1) an Omnibus Motion for Leave to File Third Amended Complaints Pursuant to Rule 7015 of the Federal Rules of Bankruptcy Procedure (“Motion for Leave to Amend Complaint”); and (2) a Motion for Leave to Amend and Extend the Scope of the Alternative Dispute Resolution Procedures…

Mortgage Crisis & Financial Services Watch

Chase Lets Loose a Barrage of New Indemnification Demand Letters

By Philip R. Stein on April 30, 2018

Ten years after the financial crisis, mortgage companies and regional/local banks are still getting hit with new breach of contract and indemnification claims related to loans sold before the crisis. The latest case in point involves demand letters that JPMorgan Chase is sending out to lenders throughout the country. The letters pertain to loans sold by originators to EMC, Bear Stearns and Chase prior to 2008. Chase then pooled those loans with loans it originated on a…

Mortgage Crisis & Financial Services Watch

A Decade on, Crisis-Era Litigation Still Bedevils Banks

By Philip R. Stein on April 5, 2018

Banks and other financial institutions might reasonably have expected that, 10 years after the collapse of Bear Stearns and the demise of Lehman Brothers, they would finally be free and clear of lawsuits spawned by the financial crisis. That has not come to pass. Nor does freedom from legal actions rooted in the events of that era appear imminent. This circumstance should be seen not just as an annoyance for banks, or another indication of…

Mortgage Crisis & Financial Services Watch

Lehman RMBS Settlement Likely to Spur Additional Claims

By Philip R. Stein on March 19, 2018

On March 8, the Bankruptcy Court for the Southern District of New York concluded a lengthy “claims estimation” trial to determine the appropriate final settlement price for a resolution of lawsuits filed on behalf of investors in residential mortgage-backed securities (RMBS) created by Lehman Brothers Holdings prior to its bankruptcy in September 2008. The judge determined that the final settlement value of this particular set of claims was $2.38 billion – down from the $37…

Mortgage Crisis & Financial Services Watch

The Eighth Circuit Raises the Bar for Would-Be Indemnitees

By Philip R. Stein & Shalia Sakona on January 2, 2018

Here is a situation that comes up quite a bit in the world of business contracts containing indemnification provisions, and in the insurance industry as well. First, a party (“Party A”) gets sued, or threatened with a suit, and settles the claims against it. Party A then seeks indemnification from another party (“Party B”) for all, or a portion of, the settlement payment that Party A made. Party B, in addition to challenging in other…

Mortgage Crisis & Financial Services Watch

CFPB Arbitration Rule Eliminated by Congress and President

By Philip R. Stein on November 2, 2017

On November 1, President Trump formally did away with a Consumer Financial Protection Bureau (CFPB) arbitration rule that would have given consumers the opportunity to file class actions against banks and other companies in the financial services industry. The CFPB rule was released in July 2017. It sought to prohibit and eliminate bans against class actions that had become a staple of arbitration clauses in consumer financial agreements. The president signed a resolution, passed by…

Mortgage Crisis & Financial Services Watch

New Wave of Lehman Litigation Appears to Be Imminent

By Philip R. Stein on May 23, 2017

Thousands of mortgage lenders across the country either recently received, or will soon be receiving, this document from Lehman Brothers Holdings, Inc. (LBHI). It is a notice of a motion to approve a proposed settlement of Residential Mortgage-Backed Securities (RMBS) claims asserted by trustees and investors against LBHI over the last few years. The notice of proposed settlement refers to proposed findings of fact, sets a deadline (June 22) for objections to the settlement,…

Philip R. Stein

From RMBS to SLABS: Is History Repeating Itself?

New Second Circuit Statute of Limitations Ruling A Benefit to Loan Originators, Brokers

New York High Court Rules on Statute of Limitations

Lehman Brothers Seeks to Expand Lawsuits Against Loan Originators

Chase Lets Loose a Barrage of New Indemnification Demand Letters

A Decade on, Crisis-Era Litigation Still Bedevils Banks

Lehman RMBS Settlement Likely to Spur Additional Claims

The Eighth Circuit Raises the Bar for Would-Be Indemnitees

CFPB Arbitration Rule Eliminated by Congress and President

New Wave of Lehman Litigation Appears to Be Imminent

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