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February 2, 2012: Paul Snyder joins forces with Talcott Franklin P.C.

Paul Snyder, a leading commercial mortgage-backed securities (CMBS) litigator, is joining the Dallas-based Talcott Franklin P.C. law firm effective today. Snyder, who is licensed in Kansas and Missouri, will be based in Leawood, Kansas and will continue his membership in Snyder Law Firm LLC along with his position as of counsel for Talcott Franklin P.C.

Paul brings with him significant CMBS trial experience having achieved back-to-back federal jury trial victories against Bank of America in Ohio and Oklahoma federal courts. These cases are believed to be the first two CMBS repurchase cases ever to reach a jury verdict. Snyder’s litigation experience combined with Tal Franklin’s established national expertise in CMBS and residential mortgage-backed securities (RMBS) transactions creates a formidable team. “We are excited that Paul Snyder is joining our team. Paul’s experience as a national CMBS investor advocate greatly enhances our Firm’s expertise in pursuing investor rights with both CMBS and RMBS claims. Being the first lawyer to achieve a CMBS repurchase verdict from a jury lends Paul instant credibility in the securitization world,” explains Tal Franklin, Founder and President of Talcott Franklin P.C. “Paul’s prior experience as a state prosecutor continues our Firm’s commitment to ensure that all our attorneys have in-house or government experience,” Franklin adds.

Talcott Franklin P.C. primarily pursues investor rights in securitization transactions. The firm founded the RMBS Clearing House, which allows investors to seek confidential legal advice concerning their collective action rights in conjunction with other clients of the firm. The firm currently represents foreign and domestic clients who collectively hold over half of the outstanding international balance of private label RMBS certificates.

Snyder Law Firm Featured in the KC Business Journal


This information is not intended to create an unjustified expectation of results that this law firm can achieve. Past results afford no guarantee of future results. Every case is different and must be judged on its own merits.

June 14, 2011: SNYDER LAW FIRM WINS SECOND JURY TRIAL AGAINST BANK OF AMERICA IN COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS) REPURCHASE CASE

For the second time, Snyder Law Firm has won a major trial victory in a CMBS repurchase case against Bank of America. The federal court case in Oklahoma involved three multifamily loans with collateral properties in Oklahoma and South Carolina. LaSalle Bank National Association (later acquired by Bank of America) originated and securitized the loans into two CMBS pools known as 2006-MF2 and 2006-MF3, worth approximately $500 million each.

After the loans at issue went into default, special servicer Crown NorthCorp, Inc. determined that LaSalle breached a number of representations and warranties in originating and securitizing the loans. When Bank of America refused to repurchase the loans, Crown initiated this litigation in the Western District of Oklahoma on behalf of MF2/MF3 Trustee Wells Fargo Bank, N.A.

On June 14, 2011, following a month-long trial, a unanimous jury concluded that LaSalle breached multiple representations and warranties with respect to two of the loans at issue. Among these breaches, the jury determined that LaSalle failed to originate the loans in accordance with customary industry standards, the loans were already in default when they were securitized, and the loans were not supported by FIRREA-compliant appraisals. The jury also found that the breaches materially and adversely affected the value of the loans, related mortgaged properties, or the interests of the investors in the loans. In addition, Plaintiff put on evidence at trial of numerous systemic flaws in LaSalle’s commercial loan program that materially and adversely impacted all loans that LaSalle made, including the loans at issue.

Plaintiff is now entitled to recover the “Purchase Price” for each loan, which includes the unpaid principal loan balance, interest, legal fees, and other amounts as set forth in the parties’ Pooling and Servicing Agreement (PSA). The court will conduct a bench trial to determine the final Purchase Prices, but the unpaid principal balances and interest alone exceed $6 million.

Paul D. Snyder and Brad Mirakian of Snyder Law Firm, which is national counsel for Plaintiff, represented Plaintiff at trial along with Oklahoma co-counsel Kiran A. Phansalkar and Crystal A. Johnson of Conner & Winters, LLP in Oklahoma City. Bank of America was represented by Cadwalader, Wickersham & Taft LLP in New York City, and Kegler, Brown, Hill and Ritter in Columbus, Ohio. The case citation is Wells Fargo Bank, N.A. v. LaSalle Bank National Association, Case No. 5:08-cv-1125-C (W.D. Okla.). View Notable Rulings >

This is the second victory that Snyder Law Firm has achieved against Bank of America concerning the LaSalle securitizations. Snyder Law Firm previously prevailed at trial in a separate repurchase action in the Southern District of Ohio concerning two other MF2 loans. Wells Fargo Bank, N.A. v. LaSalle Bank National Association, Case No. 3:07-cv-0449 (S.D. Ohio).

This information is not intended to create an unjustified expectation of results that this law firm can achieve. Past results afford no guarantee of future results. Every case is different and must be judged on its own merits.

December 23, 2010: SNYDER LAW FIRM FILES “GLOBAL” LAWSUIT AGAINST BANK OF AMERICA DEMANDING REPURCHASE OF HUNDREDS OF LASALLE MF2 AND MF3 LOANS

On 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 provides additional and detailed allegations regarding the systemic flaws that were present in the MFG loan program, and includes references to internal LaSalle and Bank of America documents. To view the amended complaint, click here.

The case citation is Wells Fargo Bank, N.A. v. LaSalle Bank National Association, Case No. 11-cv-2884 (N.D. Ill.).

November 24, 2009: SNYDER LAW FIRM PREVAILS AGAINST BANK OF AMERICA IN JURY TRIAL OF COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS) REPURCHASE CASE

Snyder Law Firm has prevailed against Bank of America in what is believed to be the very first commercial mortgage-backed securities (CMBS) repurchase case to be tried to a jury. The case involved two multifamily loans with collateral properties in Ohio and Maine. LaSalle Bank National Association (later acquired by Bank of America) originated and securitized the loans into a CMBS pool known as 2006-MF2, which originally contained approximately $500 million in commercial loans.

After the two loans at issue went into default, special servicer Crown NorthCorp, Inc. determined that LaSalle breached a number of representations and warranties in originating and securitizing the loans, and demanded that LaSalle repurchase the loans under the parties’ Pooling and Servicing Agreement (PSA). When LaSalle refused, Crown initiated the repurchase litigation in the Southern District of Ohio on behalf of MF2 Trustee Wells Fargo Bank, N.A. alleging numerous breaches of representations and warranties by LaSalle.

On November 24, 2009, following a three-week trial, a unanimous jury concluded that LaSalle breached multiple representations and warranties that materially and adversely affected the loans or the investors’ interests in the loans. Specifically, the jury found that LaSalle failed to originate the loans in accordance with customary industry standards, and that the loans were already in default under the terms of the mortgage documents at the time they were securitized. The jury also found that, in the context of the representations and warranties, the word “origination” includes underwriting activities.

Plaintiff is now entitled to recover the “Purchase Price” for each loan, which includes the unpaid principal loan balance, interest, legal fees, and other amounts as set forth in the parties’ Pooling and Servicing Agreement (PSA).

Paul D. Snyder of Snyder Law Firm, who is national counsel for Plaintiff, and Ohio counsel Dianne F. Marx of Sebaly Shillito + Dyer, P.A. in Dayton, Ohio represented Plaintiff at trial. Bank of America was represented by Cadwalader, Wickersham & Taft LLP in New York City, and Kegler, Brown, Hill and Ritter in Columbus, Ohio. The case citation is Wells Fargo Bank, N.A. v. LaSalle Bank National Association, Case No. 3:07-cv-0449 (S.D. Ohio). View Notable Rulings >

This information is not intended to create an unjustified expectation of results that this law firm can achieve. Past results afford no guarantee of future results. Every case is different and must be judged on its own merits.

   
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