Mortgage-Backed Securities Litigation

Forensic & Litigation Consulting

October 13, 2016

FTI Consulting helps financial institutions address the regulatory and litigation pressures surrounding mortgage loan origination, servicing, and securitization practices. Our multi-disciplinary team brings expertise in mortgage origination and underwriting, loan servicing, MBS securitization practices, and data analysis, through experienced litigation consultants and expert testifiers.

The following summarizes the services most often requested by our clients in defending their mortgage loan origination, servicing, and securitization practices:

Mortgage Re-Underwriting
Our senior underwriters are full-time FTI Consulting employees, each with over 15 years of experience that have assisted with the:

  • Capture of over 400 data points for each loan to facilitate specific responses to individualized allegations of defect
  • Notation of location (Production Number) of key documents in the loan file, in order to facilitate responses to plaintiff allegations of “missing documents”

Materiality Assessment
Underwriting guidelines are a sliding scale of credit, procedural, and business decisions, including:

  • Credit issues impact a borrower’s ability and willingness to pay, originator business policy does not
  • Missing documents — critical vs non-critical
  • Severity or guideline exceptions (DTI, Credit Score, or LTV/CLTV) and use of compensating factors in mitigating exceptions to guidelines

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