Sign up today and take advantage of member-only content — the kind of timely, cutting edge industry insight that only Structured Finance News can deliver.
  • Asset Securitization Report one-month trial subscription
  • StructuredFinanceNews.com one-month trial subscription
  • Free e-newsletters
  • Free whitepapers

FHLB San Francisco Sues Nine Dealers in MBS Lawsuit


The Federal Home Loan Bank of San Francisco (FHLB San Francisco) has sued nine securities dealers that sold the GSE nearly $20 billion in private-label MBS.

The San Francisco bank, like other FHLBs, suffered losses due to its investment in AAA-rated private-label MBS.

The complaint filed in Superior Court in the County of San Francisco, alleges that the dealers made "untrue or misleading statements" about the characteristics and quality of the mortgage loans underlying the securities.

The San Francisco FHLB is seeking to rescind those MBS purchases, which originally cost $19.1 billion. In February, the Seattle FHLB filed a similar lawsuit against issuers to compel them to buy back $4 billion in private-label MBS.


For more information on related topics, visit the following: