Mis-sold Mortgage Claims > Mortgage News
Fine of USD3 Million for Barclays Capital
Mon, 09 Jan 2012
A fine has been imposed on Barclays Capital of $3m for mis-representing data on sub-prime securitisations

The Financial Industry Regulatory Authority, for a three year period, has fined Barclays Capital $3m for misrepresenting delinquency data and inadequate supervision on residential sub-prime mortgage securitisations.

Issuers of subprime RMBS have to disclose historical performance information for past securitisations which contain mortgage loans like those in the RMBS being offered to investors.

Historical delinquency rates are crucial for investors assessing the value of RMBS and in pinpointing whether or not future returns can be disrupted by mortgage holders' not making loan payments .

FINRA have found that between March 2007 and December 2010, Barclays misrepresented the historical delinquency rates for three subprime RMBS it had underwritten and sold.
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