National Credit Union Administration Board v. RBS Securities, Inc. et al

Filing 498

ORDER regarding RBS disclosures under section k of the Loan File Re-Underwriting Protocol. Signed by Magistrate Judge James P. O'Hara on 3/31/2015. (ah)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
----------------------------------------X
NATIONAL CREDIT UNION ADMINISTRATION
:
:
BOARD, etc.,
:
Plaintiff,
-v:
:
MORGAN STANLEY & CO., et al.,
:
:
Defendants.
:
:
And other NCUA Actions.
:
----------------------------------------X
UNITED STATES DISTRICT COURT
DISTRICT OF KANSAS
----------------------------------------X
NATIONAL CREDIT UNION ADMINISTRATION
:
BOARD, etc.,
:
Plaintiff,
:
-v:
:
RBS SECURITIES, INC., f/k/a GREENWICH
:
CAPITAL MARKETS, INC., et al.,
:
:
Defendants.
:
:
And other NCUA Actions.
:
----------------------------------------X

13cv6705
13cv6719
13cv6721
13cv6726
13cv6727
13cv6731
13cv6736

(DLC)
(DLC)
(DLC)
(DLC)
(DLC)
(DLC)
(DLC)

USDC SDNY
DOCUMENT
ELECTRONICALLY FILED
DOC #: _________________
DATE FILED: ______________
3/31/15

11cv2340
11cv2649
12cv2591
12cv2648
13cv2418

(JWL)
(JWL)
(JWL)
(JWL)
(JWL)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION
----------------------------------------X
NATIONAL CREDIT UNION ADMINISTRATION
:
BOARD, etc.,
:
Plaintiff,
:
-v:
:
RBS SECURITIES, INC., f/k/a GREENWICH
:
CAPITAL MARKETS, INC., et al.,
:
:
Defendants.
:
:
:
And other NCUA Actions.
----------------------------------------X

11cv5887 (GW)
11cv6521 (GW)
ORDER

HON. DENISE COTE, HON. JOHN W. LUNGSTRUM, and HON. GEORGE H. WU,
District Judges; and HON. JAMES P. O’HARA, Magistrate Judge:
In letters of March 27 and 30, NCUA and RBS dispute the
scope and timing of any RBS disclosures under section (k) of the
Loan Rile Re-Underwriting Protocol (“LFRP”).

Section (k) reads:

In the event that any Defendant intends to reunderwrite any set of Loan Files other than the NCUA
Sampled Loans for purposes of an expert report, it
shall notify NCUA of that intention no later than
February 20, 2015. In that event, the parties shall
meet and confer regarding an appropriate schedule of
disclosures. If they are unable to agree upon a
schedule, they shall present their competing proposals
to the Coordination Judge.
The LFRP required NCUA to identify by April 18, 2014 the
sample of loans from the supporting loan groups for each RMBS
certificate at issue in the actions (“Sampled Loans”).

NCUA,

with assistance from defendants in these coordinated actions,
has been collecting loan files and associated originator
guidelines in the intervening year.
2

NCUA has also been

submitting to defendants requests for stipulations that, inter
alia, a loan file is the best available representation of the
loan file that the parties have been able to locate.
In the RBS actions, NCUA identified 8800 Sampled Loans.

It

took approximately four months (August 2014) for this vast
collection effort to reach the point where 80% of the loan files
had been gathered.

At the five month mark (September 2014),

roughly 90% of the files had been collected.

As of early March

2015, NCUA had collected 7810 loan files from third-parties and
defendants had produced 1329 loan files.

Together, that

represents 96% of the NCUA sample for the RBS actions.

NCUA has

proposed over 3000 stipulations to RBS regarding those files,
and the parties had reached 2002 loan file stipulations.

The

parties have also reached stipulations as to the guideline and
matrix for the Sampled Loans for just 1488, or 17%, of the
Sampled Loans.
Meanwhile, fact discovery has been ongoing.
be completed by July 17, 2015.

It is due to

Expert disclosures by the party

bearing the burden of proof on an issue are due on August 14,
2015.

Rebuttal expert reports are due October 16, 2015.
At conferences to be held in September 2015, cases will be

assigned to trial tranches.
occur in June 2016.

The first S.D.N.Y. trials will

All trials in these coordinated actions

shall be completed by March 2017.
3

Having reviewed the parties’ submissions on this dispute,
and being mindful of the effort and cost associated with the
time-consuming tasks of collecting loan files and reunderwriting
a loan, of the schedule set for these coordinated actions, and
of the need to avoid unreasonable delay, it is hereby
ORDERED that RBS shall, by April 10, 2015, disclose to NCUA
the loans other than the Sampled Loans that it intends to
reunderwrite, identify the securitizations from which they are
drawn, and state the purpose of the reunderwriting.
IT IS FURTHER ORDERED that RBS shall, by April 10, 2015,
produce any of the loan files for such loans that are in its
possession and any associated underwriting guidelines, and shall
promptly produce thereafter such loan files and guidelines as it
obtains them.

4

IT IS FURTHER ORDERED that RBS shall, by May 16, 2015,
provide notice of the specific loans that will be the subject of
its affirmative expert reports, and explain the method it used
for the selection of these loans.

Dated: March 31, 2015

__/s/ Denise Cote _______________
United States District Judge

Dated: March 31, 2015

__/s/ George H. Wu________________
United States District Judge

Dated: March 31, 2015

___/s/ John W. Lungstrum__________
United States District Judge

Dated: March 31, 2015

___/s/ James P. O’Hara____________
United States Magistrate Judge

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