Fudge v. Rare Hospitality International, Inc. et al

Filing 9

ORDER: Accordingly, Plaintiff is directed to advise the Court of the status of this action no later than March 20, 2020, or the Court will deem him to have abandoned his claims and it will direct the Clerk of Court to close this case. (As further set forth in this Order.) (Signed by Judge John F. Keenan on 2/20/2020) (cf)

Case 1:09-md-02013-PAC Document 57
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
------------------------------- X

RONALD THOMAS FUDGE,
Plaintiff,
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
-against-----------------------------------------------------------x
In re FANNIE MAE 2008 SECURITIES
:
RARE HOSPITALITY INTERNATIONAL,
LITIGATION
:
INC., CB RICHARD ELLIS, INC.,
:
CROSSROADS MALL LIMITED
:
PARTNERSHIP, and ROUTE 23
-----------------------------------------------------------x
ASSOCIATES, LLC,

Filed 09/30/10 Page 1 of 45
USDC SDNY
DOCUMENT
ELECTRONICALLY FILED
DOC #: _________________
DATE FILED: 02/20/2020

08 18 Civ. 5526 (JFK)
No.Civ. 7831 (PAC)
09 MD 2013 (PAC)
ORDER
OPINION & ORDER

Defendants.
------------------------------- X

HONORABLE PAUL A. CROTTY, United States District Judge:
JOHN F. KEENAN, United States District Judge:

BACKGROUND1
On November 14, 2018, the Court held a pretrial conference
The which Defendants indicated home they may move for
during early years of this decade saw a boom in that financing which was fueled,aamong
other things, of low interest rates and lax credit conditions.§ New lending instruments, such as
change by venue pursuant to 28 U.S.C.
1404(a). The Court
subprime mortgages (high credit risk loans) and Alt-A mortgagesto file the motion,
allowed Defendants until January 2, 2019, (low-documentation loans)
kept the boom going. Borrowers played a role too; they took on unmanageable risksso the
however, according to the docket, Defendants never did on and
assumption that the market would continue to rise and that refinancing November 14, 2018
this case has remained dormant ever since the options would always be
available in the future. Lending discipline was lacking in the system. Mortgage originators did
conference.
not hold these high-risk mortgage loans. Rather directed to advise their books, theof
Accordingly, Plaintiff is than carry the rising risk on the Court
originators sold their loans into the secondarylater than March as securitized packages
the status of this action no mortgage market, often 20, 2020, or the
known as mortgage-backed securities (“MBSs”). MBS markets grew almost exponentially.
Court will deem him to have abandoned his claims and it will
But the Clerk of Court to 2006, the demand for housing dropped abruptly
direct then the housing bubble burst. In close this case.
SO ORDERED.
and home prices began to fall. In light of the changing housing market, banks modified their

_J-077~

Dated:
New York, unwilling to
lending practices and becameNew York refinance home mortgages without refinancing.
February 20, 2020
~
John F. Keenan
United States District Judge
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