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RMBS Litigation Support

Based on a strong reputation for delivering complex data and analytics projects in the Financial Services and Regulatory industry, The Oakleaf Group has been retained by Korein Tillery and Wollmuth Maher and Deutsch, counsel for various Plaintiffs, to offer an opinion regarding losses incurred by the Plaintiffs in connection with their purchase of residential mortgage-backed securities (“RMBS”) certificates. 


Starting 2005, plaintiffs had invested over $4 billion in these certificates and have lost approximately $1.6 billion as of August 31, 2016.  The project entails providing data, analytics and subject matter expertise for end-to-end litigation expert services that includes performing loss analysis, understanding the Pooling and Servicing Agreements (PSAs). PSAs are essentially a contract that governs the rights and obligations of multiple parties, including Plaintiffs and the Defendants, involved in the transaction. This effort included building a “unique-to-each” transaction cashflow model per the PSA, collecting monthly collateral performance and bond administration data for the past 12 years, building a Monte Carlo Alternate Scenario Simulation Engine, responding to interrogatories, formulating depositions and providing expert affidavits, authoritative declarations on subject matter and expert testimony at trial.


Oakleaf Group invested in a strategic plan to support potential legal outcomes from the nation's 2007 housing crisis.  This plan required accumulating SME Knowledge for financial markets and RMBS securities by understanding PSAs, analyzing RMBS Trustee Remittance Reports and RMBS Collateral Performance Data.  To be successful and compliant with court deadlines, Oakleaf Group has developed a process to respond within court mandated reporting deadlines (typically 3 to 21 days).  The analytics and reporting process involves downloading and parsing terabytes of data, performing data analytics, and developing models with 100% accuracy. 


As part of this process, Oakleaf Group developed complex cashflow models incorporating up to 20 variables and up to 200 data fields based on the terms of the Pooling and Servicing Agreement.  Once developed, Oakleaf Group performed cashflow model validations against industry standard models (INTEX).


Oakleaf Group also developed tool that came to be called then “MC1000 Tool” that would execute 1000 Monte Carlo simulations and apply statistical methods to affect alternate scenarios for the cashflow models. 


Based on the successful execution of this process for our clients, Oakleaf Group has become the go to firm for SME knowledge for trustee litigation expert services.  Oakleaf Group has served as testifying expert in court trials providing expertise on damages assessment based on quantitative and statistical analysis that involves terabytes of data from multiple sources and formats and building and executing complex cashflow models. 


In being the damages expert, Oakleaf Group is advising clients on meaning and applicability on RMBS Securities and Collateral Performance data for 746 securitizations (including monthly trustee bond administration and collateral performance data for over 13 years).  This requires transforming trustee reported bond administration (PDF format) and collateral (text format) data into relational databases to allow for more efficient analytics and modeling. 


Oakleaf Group expects the data to have its strengths and weaknesses and is able to give an accurate assessment of data quality within a week and provide analysis results with assumptions.


Over the last 7 years, Oakleaf Group has invested time and resources in supporting financial services data analytics evolution, and participating in regulatory industry conferences and sponsoring research to help address issues relating to market structure, regulations, technology innovations, and trends that will impact the RMBS Securities Markets and Financial Services.