FHFA Expert Loan Sampling Method In RMBS Suits Gets OK'd

Law360, New York (December 4, 2012, 3:59 PM EST) -- A New York federal judge on Monday said the Federal Housing Finance Authority can use an expert's methodology to sample and evaluate mortgage loans in order to support its claims that major banks misrepresented the quality of billions in residential mortgage-backed securities.

U.S. District Judge Denise Cote, who is overseeing 16 FHFA suits alleging Wall Street financial institutions lied to Fannie Mae and Freddie Mac about the quality of $200 billion in RMBS purchased by the government-backed entities, rejected the banks' contention in 15 of the...
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