Principals Courtney Statfeld, Robert Scheef and Associate Daniel Hendler have secured another monumental win for RMBS investors. Hon. Andrew Borrok of the New York Civil Court has delivered a resounding judgment that compels the recalculation of the trust servicers' termination price concerning the "clean-up call" provision. Trust investors sought to recalculate the call price, as they argued that the trusts that had previously been terminated at a termination price did not include deferred payments. Yesterday, Hon. Andrew Borrok ordered that the Petitioners “are instructed that the calculation of the Termination Threshold and Termination Price for each Trust should include Deferred Principal Balances,” thus canceling today’s scheduled oral arguments.
This directive is especially significant as it follows closely following a congruent ruling from a California Superior Court in August. That judgment, too, ratified the inclusion of deferred principal value in determining the termination price. The ramifications of these twin verdicts are vast and far-reaching as the courts' combined stance is poised to impact a substantial swath of RMBS trusts that were securitized in the early 2000s. These trusts collectively represent a staggering sum of hundreds of billions of dollars in residential mortgages. For many investors, the clarity brought forth by these decisions is invaluable, providing a more straightforward path forward in navigating the intricate landscape of RMBS terminations.
Courtney Statfeld and Robert Scheef’s leadership in the New York and California cases cements their position as leading figures in financial litigation. Their profound expertise and dedication have been instrumental in shaping a favorable outcome for countless investors. The firm's dynamic approach to navigating complex legal terrains and deep understanding of the RMBS space proved pivotal in representing and securing investor interests.