Housing
Settling for Injustice: The Conundrum of Mortgage Crisis Settlements
This week Bank of America finds itself facing the largest fraud lawsuit thus far as a result of the mortgage debacle. The Justice Department filed the complaint in Manhattan federal court on Wednesday, and powerhouse U.S. Attorney Preet Bharara, who led the charge against Raj Rajaratnam of the Galleon Group, is at the head of [...]
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TAGS mortgage fraud, Subprime Litigation
POSTED IN Banking & Finance, Housing, Litigation, Real Estate
POSTED IN Banking & Finance, Housing, Litigation, Real Estate
The Link Between GSE Reform and QE3
On August 17th, the Treasury Department revamped its financial support of Fannie Mae and Freddie Mac. The new agreements increased the share of profits payable to the Treasury. The Treasury Department also accelerated the pace at which the mortgage-finance giants are required to wind down their mortgage portfolios and pay back the government for their [...]
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TAGS Bernanke, fannie mae, Federal Reserve Board, freddie mac, GSE, mortgage rates, QE3
POSTED IN Capital Markets, Housing, Real Estate
POSTED IN Capital Markets, Housing, Real Estate
Government Sponsored Enterprise Reform: A Historical Perspective Part III
In February of 2011, the Treasury released a whitepaper outlining three possible GSE reform proposals. The first proposal calls for a fully privatized system of housing finance. The second proposal calls for a fully privatized system with an explicit guarantee mechanism that can scale up during times of crisis.
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TAGS GSE reform, housing finance
POSTED IN Capital Markets, Consumer Finance, Housing, Real Estate
POSTED IN Capital Markets, Consumer Finance, Housing, Real Estate
Government Sponsored Enterprise Reform: A Historical Perspective Part II
(Editor’s note: This is the second post in a three part series. The first post covers the history of the mortgage market and the advent of modern mortgage securitization practice. This post examines some of the roots of the financial crisis and discusses the impact of the financial crisis on the mortgage market. Look forward to [...]
Government Sponsored Enterprise Reform: A Historical Perspective
In September 2008, just days before the subprime financial crisis, the Federal Reserve placed mortgage giants Fannie Mae and Freddie Mac into conservatorship. This act represented the collapse of a mortgage system that originated nearly eighty years earlier and arguably triggered the near collapse of the broader financial system. This series of three blog posts [...]
A Settlement So Big, It Has Its Own Website
After negotiating for several months, chronicled throughout on the Fordham Corporate Law Forum, 49 states and five banks have signed onto a reported $25 billion settlement. Although terms of the settlement are still being released, it is clear that five banks – Wells Fargo, Bank of America, JPMorgan Chase, Citigroup and Ally Financial – will [...]
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TAGS Ben Bernanke, foreclosures, Kamala Harris, national mortgage settlement, robosigning
POSTED IN Housing, Real Estate
POSTED IN Housing, Real Estate
Defending Skin-in-the-Game in the Market For Residential Mortgages
Securitization of residential mortgage loans increases credit availability and liquidity as capital market funders from around the world are linked with consumer borrowers. The distance created between consumer borrower and ultimate bondholder, however, results in an originate-to-distribute model of lending that misaligns incentives and encourages shady—and even predatory—lending practices. As we all know, underwriting standards [...]
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TAGS Section 15G, securitization, skin-in -the-game
POSTED IN Capital Markets, Dodd-Frank, Housing, Real Estate, Securities Regulation
POSTED IN Capital Markets, Dodd-Frank, Housing, Real Estate, Securities Regulation
Obama Announces Housing Plan
Obama’s Plan Announced On Monday, the Obama administration announced a plan which will attempt to help struggling homeowners refinance their mortgages. Mr. Obama’s plan revamps a federal initiative known as the Home Affordable Refinance Program (“HARP”), which was started in 2009 as one of the first initiatives of the new presidency. The HARP revamp plan [...]
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TAGS bailouts, fannie mae, freddie mac, HARP, recovery
POSTED IN Housing, Legislation, Real Estate
POSTED IN Housing, Legislation, Real Estate
Differing Approaches to Spur the Real Estate Market
On October 20, Daniel Tarullo, the Federal Reserve Board Governor, made his first speech focusing solely on economic outlook since joining the Fed in 2009. In that speech, Tarullo said, “housing continues to hang like an albatross around the necks of homeowners and the economy as a whole.” The Fed, under Tarullo’s leadership and guidance, [...]
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Eugene P. and Delia S. Murphy Conference on Corporate Law
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Representation Without Accountability?
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The Philosophy and Practice of Disclosure
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Financial Reform Legislation: There Ought To Be A Law, But Is This It?
Highlights From Volume 18 Book I
THE BEHAVIORAL PARADOX: WHY INVESTOR IRRATIONALITY CALLS FOR LIGHTER AND SIMPLER FINANCIAL REGULATION
It is widely believed that behavioral economics justifies more intrusive regulation of financial markets, because people are not fully rational and need to be protected from their quirks. This Article challenges that belief. Firstly, insofar as people can be helped to make better choices, that goal can usually be achieved through light-touch regulations. Secondly, faulty [...]
DEMANDING SUBSTANCE OR FORM? THE SEC’S PLAIN ENGLISH HANDBOOK AS A BASIS FOR SECURITIES VIOLATIONS
In 1998, the United States Securities and Exchange Commission (“SEC” or “Commission”) released a style manual titled “The Plain English Handbook.” The culmination of a drive by its Chairman, Arthur Levitt, the Handbook drew upon the rules of grammar, best industry practice, and even the support of billionaire Warren Buffett in calling for a layman’s [...]
FULL OF HOT AIR? EVALUATING THE AIRGAS COURT’S RESERVATIONS ABOUT SHAREHOLDERS’ SHORT-TERM AND LONGTERM INTERESTS IN TAKEOVERS
This Note explores the incentives and preferences of shareholders in takeovers. This analysis is conducted in the context of the Delaware Chancery Court’s February 2011 decision in Air Products & Chemicals v. Airgas. In that case, the court’s decision largely turned on whether certain short-term and long-term shareholders have different preferences and incentives in takeovers. [...]
News & Events
- Can Woman Have It All? A Live Webcast with Anne-Marie Slaughter (4/24/2013)
- 13th Annual A.A. Sommer, Jr. Lecture on Corporate, Securities & Financial Law (4/18/2013)
- 13th Annual A.A. Sommer, Jr. Lecture on Corporate, Securities & Financial Law (4/18/2013)
- International In-House Counsel Breakfast Forum Series for Students (4/18/2013)
- Business Law Practitioners Series for students (4/16/2013)
- Fordham Corporate Center