ResCap Liquidating Trust vs. Home Loan Center
Karl Snow was retained 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 and it is alleged that mortgage originators sold RFC billions of dollars of defective loans that breached their representations and warranties. As part of his analysis, Dr. Snow proposed and implemented a sampling protocol to assess mortgage loan defect rates for individual defendants, and he used these defect rates to establish liability and calculate damages. In the first of the lawsuits to go to trial, the jury returned a verdict in favor of ResCap, ultimately awarding $28.7 million in damages. Combining this award with the dozens of separate actions have thus far resulted in recoveries of over $1.3 billion for the Trust.
Wall Street Journal: https://www.wsj.com/articles/rescap-bankruptcy-trust-nets-first-jury-verdict-1541790822