Mortgage Litigation

The Oakleaf Group provides unparalleled mortgage litigation services that support our clients’ cases by combining deep RMBS expertise, consulting and testifying experts, loan file re-underwriting, advanced RMBS data analytics, and commercially available AVMs and data sets on a single integrated team. 

Read more in our Litigation Support Overview.

Over the last few years, the breadth and depth of commercially available mortgage data has advanced significantly. Oakleaf is now able to combine expert re-underwriting capabilities with mortgage data analytics to produce clear factual reporting of underwriting deficiencies and representation and warranty violations. Our tools support pre-trial investigative activities, discovery and expert reporting and damages evaluation phases of litigation.

Our processes continually improve along with Courts’ evolving understanding of practices involved in underwriting, origination and securitization during 2004-2008. The mortgage banks are settling claims of inflated appraisals, robo-signing, abandonment of prudent underwriting, and misrepresentation of collateral characteristics and quality. Discovery and expert testimony has become more sophisticated, and plantiffs must bring the very best in analysis to bear to survive increasingly informed questioning from judges and defense. 

Judge Cote’s recent ruling in the Nomura case confirmed that our approach to re-underwriting, compensating factors, red flags, and defect identification is valid.  While Oakleaf was not retained in that case, our approach parallels the process and arguments laid out by judge Cote in her opinion. Indeed, “The magnitude of falsity, conservatively measured, is enormous”.

We are delivering results for our clients, including:

  • Proven high material and adverse underwriting defect rates - in excess of 70% in some pools
  • Favorable settlements, including a large government agency pursuing repurchase claims and MBS litigation resulting in over $16 billion dollars of settlements, the settlement in Tsereteli v. RAST, 08-cv-10637, the $340 million settlement in IndyMac Mortgage-Backed Securities Litigation, 09-cv-04583, and numerous other confidential matters
  • Litigation Support for Trustee actions claiming violations of representations and warranties and or failure to repurchase loans for such violations by originators, sponsors or other obligors.
  • Managed re-underwriting and creation of repurchase claims for tens of thousands of mortgage loans
  • Analyzed subpoenaed due diligence records to show sponsors knowingly misled investors
  • Assisting clients in shaping depositions based on analysis of discovery materials
  • Quantification of incidence of inflated appraisals, misrepresentation of occupancy, undisclosed liens, and misrepresentation of LTV and CLTV in numerous securitizations.

Through our RMBS Litigation and Repurchase work with over 400 securitizations analyzed, we have one of the largest sets of Underwriting Guidelines in the world.