Repurchase Claims

Further, over 25 Patton Boggs litigation partners and/or associates have specific and significant experience in loan purchase or securitization cases, in roles such as preparing motions and accompanying evidence, reviewing documents for production, contacting witnesses, preparing pleadings, and managing contacts with investors. All of these partners and associates have been trained in the complexities of loan sales and securitizations, and the unique concerns of our clients in the industry.

Litigating claims requires understanding the nature of the industry and the inter-relationships between the parties to the purchase agreement and pooling and servicing agreement. We understand that the parties and related parties generally must continue to work together on loans in the pool not subject to the repurchase claim, occasionally working on new deals while the repurchase dispute takes place. All of the firm’s partners and associates are familiar with the complexities of loan sales and securitizations, and the unique concerns of our clients in the industry.

Patton Boggs has litigated a substantial number of cases involving loan repurchase obligations, totaling more than 800 loans and over 1000 alleged breaches of various representations and warranties. Among the host of issues related to the securitization of commercial, franchise, and residential mortgage loans, these cases have involved issues such as:

• Breaches of origination, interim servicing, loan payment, and loan security representations
• Duties of all parties to pooling and servicing agreements and loan purchase agreements
• Reinsurance and re-securitization
• B-piece due diligence
• Post-breach mitigation
• Subordination levels

In such repurchase claims involving contract disputes, the firm has handled both residential mortgage-backed security (RMBS) issues, representing lenders against investment banks, and CMBS issues, representing special servicers against investment banks.

Patton Boggs’ breadth and depth in this area is superb. Aside from the work of two prominent partners as lead counsel litigating hundreds of repurchase claims, more than 25 Patton Boggs partners and/or associates have specific and significant experience in loan repurchase cases, in roles such as preparing motions and accompanying evidence, reviewing documents for production, contacting witnesses, preparing pleadings, and managing contacts with investors.

Representative Matters:

• LaSalle Bank Nat’l Ass’n v. Capco Am. Securitization Corp.– Served as lead plaintiff’s counsel; successful plaintiff’s motion for summary judgment and defense on 54(b) motion, award of 100% of Trust’s attorneys’ fees and costs.
• ORIX Capital Markets LLC v. UBS Warburg Real Estate Securities, Inc., et al. – Served as lead plaintiff’s counsel; defeated defendants’ motion for summary judgment, successful settlement after voire dire.
• Wells Fargo Bank, NA v. UBS Warburg Real Estate Securities, Inc. – Served as lead plaintiff’s counsel; defeated defendants’ motion for summary judgment, successful settlement after voire dire.
• Financial Security Assurance Corp. v. Bay View Capital Corp. – Assisted lead counsel with discovery, witness preparation, and motion practice.
• EMC Mortgage Corp. v. MortgageIT, Inc. d/b/a MIT Lending – Lead defense counsel; defendant’s motion to dismiss granted in part, dismissing plaintiff’s claim for attorneys’ fees and indemnification.
• Lasalle Bank National Association v. Citicorp Real Estate, Inc. – Assisted lead plaintiff’s counsel with opposition to motion to dismiss.