Your End-of-Weekend Wrapup

Three from the weekend:

  • From the New York Times Dealbook, Deutsche Bank agreed on Friday to pay about $1.9 billion to settle claims that it misled Fannie Mae and Freddie Mac over the quality of home loans bundled into mortgage-backed securities.  The Times reports that sixth firms have settled with the Federal Housing Finance Agency, which oversees the government entities that sell the securities.  had sued 18 banks and financial institutions in September 2011. The agency says the institutions misled Fannie and Freddie before the financial crisis over the creditworthiness of borrowers and the quality of the loans that were packaged into securities. It is seeking to recoup some of $196 billion that Fannie and Freddie had spent buying up the so-called private-label mortgage-backed securities. (QuidnuncRE posted a link to a Reuters video earlier this month of a former Fannie Mae CFO discussing the company's operations, HERE. And we had information on a couple of Deutsch Bank deal that hit the wires Friday right around the time the settlement was being announced, HERE.)
  • There was a picture that ran in the Daily News this weekend of a group of people on the Bronx courthouse steps who were there to file an $18 million class action against a developer who produced homes for 12 first-time owners who say they were ripped off.  The article is an avalanche of claims, including breach of contract, fraud, conspiracy, negligence and attorney malpractice.  And the site complaints are as numerous, including pressure sales, “heat, black mold, sewage backups, plumbing, leaky roofs and faulty boilers almost as soon as they moved in.”  One of the plaintiffs said, ““Our American Dream has been stolen.”  They may have a tough time with their suit, which is against “real estate agents, attorneys, an architect and a builder.”  The alleged name of the entity the gang operated:  the Bad Ass Group. 
  • It’s not exactly instructive, but the story of Ireland’s housing development fueld-boom and subsequent bust is certainly sobering.  "Nothing more typified Ireland’s roaring economy a decade ago than its housing market, which saw prices and construction surge," the New York Times notes today in "Irish Try to Eradicate Ghosts of a Housing Crash." "And nothing better illustrates the costs and complexities of cleaning up after the bursting of that bubble than what to do with the thousands of homes that were never finished or, if they were occupied, have proved to be substandard."  A tale of vacancy, substandard work, sewage, teardowns . . . and some signs of a recovery.
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