Lehman Settlement With RMBS Holders
There was a significant development in the Lehman bankruptcy on Thursday, March 8, 2018. After years of wrangling between Lehman and the RMBS holders, the Court set the value of the RMBS claims at $2.38 billion - down from the $37 billion initially demanded. If history is any predictor of future events, we can expect Lehman to take the same approach it took against originators after the 2014 GSE settlements; meaning, that originators throughout the country are likely to soon receive demand letters for payment based on alleged rep and warranty breaches. Regrettably, originators may soon be facing a new slew of litigation over very old loans.