Lawsuits against the Trustees
“breaches of its express and implied contractual duties under the PSA, and its duties under common law”
PLEASE READ THE ATTACHED COMMENTARY – LOTS OF GOOD STUFF IN THERE.
We have gone through the dockets in the US District Court Southern District of New York, the Supreme Court of the State of New York County of New York, the Superior Court of California in and for the County of Orange, and the Supreme Court of Ohio to determine which trusts are still included in the active court cases against the Trustees. Exhibits from initial complaints cannot be relied on as complaints get amended and claims can proceed in narrowed form. It is a tedious process to keep track of the trusts covered in each case whether at the federal level or state level.
We have attached to today’s commentary, our list of 2,171 deals, which we believe are still included in the 11 cases currently being litigated in the US District Court and 3 state courts. We have included in the list our Webbs Hill exclusive Call Criteria, which should help determine whether the deal is eligible to be called and the likelihood of the call. We also have included the number of loans at origination for each deal in case you want to apply the Wells Fargo formula to predict the estimated reserve. See sheet labeled “ALL Complaints”.
There have been 31 deals called which are subject to these complaints. Wells Fargo seized investor cash on 20 of these deals this month and HSBC seized investor cash on one deal in September 2015. Bank of New York Mellon did not seize any cash at the call date on 7 deals, Deutsche Bank did not seize any cash at the call date on 1 deal and US Bank did not seize any cash at the call date on 2 deals. Details are listed on the sheet titled “Complaints on Called Deals Only”.
Now you know all that we know. Email/Call with questions.
Deals subject to Trustee Litigation as of June 28, 2017
source: Complaints or Amended Complaints from US District Court Southern District of NY, Supreme Court of the State of NY County of NY, Supreme Court of Ohio, Superior Court of California
Fun Fact: If you apply the Wells Fargo formula to all 2,171 deals ($3,000 per loan at origination + $130,000), then the total reserve would be $24.6 billion, approximately the federal share of Medicaid spending in Texas in 2016
Contact us at 203-276-0672 to become a client and access all reports and attachments.