Photo of Karl N. Snow, PhD

Selected Expertise

  • Asset and mortgage-backed securities
  • Damages estimation
  • Equity, fixed-income, and derivatives securities valuation
  • Fair lending and disparate impact analysis
  • Insurance allocation and valuation
  • Investment banking
  • Market manipulation
  • Sampling analysis
  • Securities analysis
  • Statistical analysis

Selected Industries

  • Commodity markets
  • Finance
  • Fixed income instruments
  • Insurance
  • Mortgage finance
  • Securities
  • Structured products
  • Subprime lending

Karl N. Snow, PhD

Profile
News
Insight
Events

Karl N. Snow has more than 25 years of experience providing financial, economic, and statistical analysis as a consultant, an academic, and a professional in the investment and mortgage banking industries. He has submitted expert reports and provided testimony in federal and state courts on economic damages and asset valuation. He provides consulting advice and expert analysis on a wide range of issues involving financial securities, insurance coverage and valuation, mortgage markets, structured products, hedge funds, contract claims, bankruptcy, and discrimination in mortgage and labor markets.

Prior to joining Bates White, Dr. Snow was a Senior Economist at Welch Consulting in Silver Spring, Maryland. He also served as Principal Economist in the Housing Analysis and Research group at Freddie Mac, and as Director at UBS Investment Bank (formerly UBS Warburg). In addition to his professional experience, Dr. Snow held professorships in the finance departments of the Kenan-Flagler Business School at the University of North Carolina-Chapel Hill and the Stockholm School of Economics, and in the economics department at Brigham Young University. Dr. Snow has taught courses and presented workshops on finance and economic topics at academic institutions in Europe and the United States.

Selected Experience

  • Testified as the damages expert on behalf of plaintiffs in Mastr Adjustable Rate Mortgages Trust 2006-OA2 v. UBS Real Estate Securities, a residential mortgage-backed securities (RMBS) matter. Calculated damages suffered by trusts or certificate holders as a result of UBS’s alleged failure to repurchase mortgages that breached the representations and warranties.

  • In the matter Federal Home Loan Mortgage Corp. v. Deloitte & Touche LLP, served as testifying expert on behalf of Freddie Mac in its dispute with Deloitte & Touche LLP (Deloitte) over improperly performed audits on Taylor Bean & Whitaker Mortgage Corporation (TBW). Freddie Mac alleged that, as a result of these audits and Deloitte’s failure to detect that TBW’s financial condition was fraudulently represented, Deloitte was responsible for the losses Freddie Mac sustained from loans purchased from TBW. Freddie Mac further claimed that many of these loans were in breach of the representations and warranties TBW made to Freddie Mac and, as a result of TBW’s collapse, it was unable to fulfill its repurchase obligations associated with those loans. Estimated damages to compensate Freddie Mac for all losses due to its purchase or guarantee of TBW loans, and for TBW’s failure to repurchase loans that breached the associated representations and warranties. The parties agreed to a settlement.

  • In Ambac v. EMC, served as testifying expert on behalf of Ambac Assurance Corporation (Ambac) in a dispute with JPMorgan Chase over residential mortgage-backed securities (RMBS). Ambac alleged that 11 RMBS sponsored by EMC Mortgage LLC (EMC), a subsidiary of JPMorgan Chase, were knowingly securitized with defective mortgage loans. Estimated damages to Ambac caused by insuring EMC-sponsored RMBS. Reconstructed the payment waterfalls and forecasted future loan performance to create a “but-for” model in which EMC bought back all significantly defective loans. JPMorgan Chase agreed to a $995 million settlement.

  • In the matter United States v. Wells Fargo Bank, served as testifying expert on behalf of the Department of Justice in connection  with allegations that Wells Fargo  defrauded the Federal Housing Administration (FHA) on loans that Wells Fargo underwrote and submitted for FHA endorsement. Determined damages arising from insurance claims on loans that allegedly failed to meet FHA-mandated underwriting guidelines. Wells Fargo agreed to a $1.2 billion settlement.

  • Serving as a testifying expert on behalf of Residential Funding Company, LLC (RFC) and the ResCap Liquidating Trust in a number of lawsuits consolidated in Minnesota and New York courts.  RFC was in the business of acquiring and securitizing residential mortgage loans before filing for bankruptcy in 2012.  RFC and the ResCap Liquidating Trust allege that mortgage originators sold RFC billions of dollars of defective loans that breached their representations and warranties. Proposed sampling protocol to determine breach rates that can be used in the determination of liability and damages.
  • In the matter Syncora Guarantee Inc. v. EMC Mortgage Corp. involving mortgage-backed securities, submitted an expert report in federal court. Discussed the economics of the securitization process and estimated damages resulting from the alleged failure of the securitization sponsor to repurchase underlying loans that breached various representations and warranties.
  • In the matter In re TFT-LCDs Antitrust Litigation, submitted expert reports calculating damages on behalf of two OEM direct-action plaintiffs. Analyzed issues of pass through at multiple stages of the supply chain.

  • In the matter FGIC v. Countrywide, submitted an expert report in state court on statistical analysis to estimate the fraction of mortgage loans in various securitized pools that allegedly failed to meet the originator’s stated guidelines and/or breached representations and warranties. Designed stratified statistical sampling framework and extrapolated defect rates to various populations of loans.

  • In the matter SACO I Trust 2006-5 v. EMC Mortgage Corp. involving mortgage-backed securities, submitted a declaration in state court on the viability, acceptability, and reliability of sampling to determine the rate of alleged defective mortgages and estimate damages.

  • In the matter Twin City Fire Insurance Co. et al. v. Arch Insurance Group Inc., submitted an expert report in state court on damages alleged to have been caused by various employees leaving one corporation for a competitor. Estimated potential damages after controlling for appropriate business and economic factors and analyzed issues related to economic causation.

  • In the matter First American CoreLogic, Inc. v. Fiserv involving a patent for estimating residential property values, submitted expert reports and testified in federal court. Assessed the validity of the patent in light of the prior art which included both academic research and industry-based estimation systems and analysis. Investigated whether a specific automated valuation model infringed upon the patent.

  • In the matter In re Garlock Sealing Technologies, LLC, submitted an expert report in federal court. Determined the appropriate discount rate and calculated the present value of the company’s asbestos-related liabilities.

  • In the matter In re Plant Insulation Company, Chapter 11 Bankruptcy, submitted expert reports in federal court on the value of various proposed transactions on behalf of a group of insurers. Analyzed the economic substance of the transactions and valued financial securities that would be created as part of the reorganization including equity, options, and fixed-income securities. Estimated the appropriate discount rates for various fixed-income securities.

Education

PhD, Economics, University of Chicago

MA, Economics, University of Chicago

BA, Economics, Brigham Young University