Shih v. Petal Card, Inc. et al

Filing 92

ORDER terminating 84 Letter Motion for Leave to File Document. Accordingly, the Court will exclude the Documents and decide the Rule 12(b) (6) motion solely on the complaint. Plaintiff shall have until September 12, 2019 to file a second amended complaint. Should Defendants then opt to file a motion to dismiss that new complaint, the parties are ORDERED to file a proposed order with the Court containing mutually agreed upon deadlines by which the Plaintiff shall file its opposition and Def endants their reply. This proposed order is to be filed contemporaneously with Defendant's motion to dismiss. The Clerk of Court is respectfully directed to terminate the motion at ECF No. 84. (As further set forth in this Order.) (Signed by Judge John F. Keenan on 8/21/2019) (cf)

Case 1:09-md-02013-PAC Document 57

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
-----------------------------------------------------------x
In re FANNIE MAE 2008 SECURITIES
:
LITIGATION
:
:
:
-----------------------------------------------------------x

Filed 09/30/10 Page 1 of 45
USDC SDNY
DOCUMENT
ELECTRONICALLY FILED
DOC #: _________________
DATE FILED: 08/21/2019
08 Civ. 7831 (PAC)
09 MD 2013 (PAC)
OPINION & ORDER

HONORABLE PAUL A. CROTTY, United States District Judge:
BACKGROUND1
The early years of this decade saw a boom in home financing which was fueled, among
other things, by low interest rates and lax credit conditions. New lending instruments, such as
subprime mortgages (high credit risk loans) and Alt-A mortgages (low-documentation loans)
kept the boom going. Borrowers played a role too; they took on unmanageable risks on the
assumption that the market would continue to rise and that refinancing options would always be
available in the future. Lending discipline was lacking in the system. Mortgage originators did
not hold these high-risk mortgage loans. Rather than carry the rising risk on their books, the
originators sold their loans into the secondary mortgage market, often as securitized packages
known as mortgage-backed securities (“MBSs”). MBS markets grew almost exponentially.
But then the housing bubble burst. In 2006, the demand for housing dropped abruptly
and home prices began to fall. In light of the changing housing market, banks modified their
lending practices and became unwilling to refinance home mortgages without refinancing.

1

Unless otherwise indicated, all references cited as “(¶ _)” or to the “Complaint” are to the Amended Complaint,
dated June 22, 2009. For purposes of this Motion, all allegations in the Amended Complaint are taken as true.

1