FINRA Probes Mortgage Securities Sales To Seniors

Law360, New York (January 4, 2008, 12:00 AM EST) -- The securities industry's self-regulatory body has sent letters to more than a dozen Wall Street firms, looking for information on how certain mortgage-related securities are marketed and sold, particularly to individual investors.

The Financial Industry Regulatory Authority, the largest nongovernmental regulator for all securities firms doing business in the United States, sent letters to more than a dozen firms in mid-December asking for detailed documentation related to collateralized mortgage obligations, according to published reports and attorneys familiar with the matter.

Collateralized mortgage obligations are a type...
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