McKool Smith has secured a pivotal trial win on behalf of junior bondholders—400 Capital Management, La Verdad Holdings, Solula LLC, and Robert Dechert—in a high-stakes residential mortgage-backed securitization (RMBS) trustee proceeding concerning 34 RMBS trusts.

Media coverage can be found below:

“A New York state court resolved a dispute between bondholders in 34 residential mortgage-backed securities trusts about how to handle repayment of principal amounts deferred during the 2008 financial crisis, siding with junior bondholders after a 17-day bench trial.”

"The New York Supreme Court has weighed in on a contractual dilemma Wells Fargo has reportedly faced as a residential mortgage-backed securities trustee with a responsibility to oversee investor payment distributions impacted by unforeseen policy changes.

A judge has ruled on how trustees and servicers should handle forborne principal from loans in the now-defunct Home Affordable Modification Program, according to McKool Smith, a law firm involved in the case, and court documents."






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