US EditionMcKool Smith Secures Industry-Shaping Trial Victory, Clarifying Treatment of Deferred Principal in RMBS Trusts
- McKool Smith achieved a significant trial victory, clarifying the treatment of deferred principal in RMBS trusts.
- Bondholders in 34 trusts faced approximately $400 million in losses due to principal forbearance granted under loan modification programs.
- Wells Fargo initiated a petition in New York Supreme Court to resolve the dispute regarding these trusts.
- The contracts for RMBS trusts were unclear regarding forborne principal since they predated modification programs like HAMP.
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McKool Smith Secures Industry-Shaping Trial Victory, Clarifying Treatment of Deferred Principal in RMBS Trusts
NEW YORK, July 23, 2025 /PRNewswire/ -- 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…
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Total News Sources55
Leaning Left9Leaning Right5Center13Last UpdatedBias Distribution48% Center
Bias Distribution
- 48% of the sources are Center
48% Center
L 33%
C 48%
R 19%
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