Ah The Irony

So Wells Fargo (trustee) has sued JP Morgan for failure to turn over loan documentation.  In the suit WFC sites reps and warranty violations on 1,317 of the 2,049 loans in the trust.  What I find ironic is this very action is going to turn around and cause similar action against WFC for reps and warranty violations from another trustee in the future.

Just like in the MBIA suit against BAC where it was ruled that there won't be a loan by loan review (sorry Brian Moynihan but you can't litigate the plaintiff to death) but rather a statistical sampling will be used in future put back requests.

So the very roles taken on by various banks such as servicer and or trust could in fact cause their actions within that capacity to yield some serious legal and financial damage to them as originator.  Apparently this is the structured finance version of kicking yourself in the A$$.


EMC JPM Wells

Ah The Irony