Snyder Law Firm Files “Global” Lawsuit Against Bank of America Demanding Repurchase of Hundreds of Commercial Loans
LEAWOOD, KS – December 23, 2010 – Snyder Law Firm filed suit against Bank of America seeking repurchase of approximately 750 multifamily loans – the vast majority of two CMBS pools known as 2006-MF2 and 2006-MF3. LaSalle Bank National Association (acquired by Bank of America) originated and securitized the loans.
As alleged in the Complaint, LaSalle breached multiple representations and warranties with respect to every MF2 and MF3 loan due to a number of “systemic” flaws in LaSalle’s origination procedures that were used in LaSalle’s Multi-Family Finance Group (MFG) loan program. For example, it is alleged that LaSalle failed to obtain and analyze source operating statements and rent rolls for properties being financed, failed to perform in-depth analyses of the borrowers’ financial condition, awarded additional leniency and underwriting exceptions to “Top 10 Brokers,” generally emphasized speed and volume of loans over quality, and failed to employ properly trained staff in the underwriting and closing positions. It is also alleged that none of the loans were supported by FIRREA-compliant appraisals because LaSalle permitted loan-production staff to order the appraisals in violation of appraiser-independence requirements.
Update: On November 10, 2011, Plaintiff filed an amended complaint, which provided additional and detailed allegations regarding the systemic flaws that were present in the MFG loan program, and included references to internal LaSalle and Bank of America documents.
The case citation is Wells Fargo Bank, N.A. v. LaSalle Bank National Association, Case No. 11-cv-2884 (N.D. Ill.).