New Precedent that Holds Banks Responsible?

Sellers of residential mortgage loans face serious financial risks if they sign purchase agreements without careful review. Key provisions on fraud, defaults, materiality, and survival periods can create unlimited liability well beyond any profit earned.

Suzanne M. Amaducci and keynote speaker Jeff Krasnoff, Chief Executive Officer of Rialto Capital Management, discuss the state of real estate debt markets amid ongoing economic uncertainty at Bilzin Sumberg’s 4th Annual Development Conference.

As claims based on pre-2008 loans sold and securitized in residential mortgage-backed securities (RMBS) trusts are still being resolved, industry analysts are bracing for a new wave of indemnification claims and put-back attempts. Credit Suisse Securities and Bank of America have both agreed to make...