Ferncliff principals have the expertise and background to be engaged as expert witnesses for a wide range of mortgage, mortgage securities, consumer loans, and consumer loan securities litigation. The firm is currently engaged on a number of such matters.
The principals have the ability to do in depth research and analysis on loan level data to determine the factual basis as compared to compliance with representations and warranties and regulatory compliance. The principals have hands on experience in these matters having managed a portfolio of owned securities that had over $35 billion in underlying loans.
In previous engagements, Ferncliff has managed the bulk of the data analysis on matters concerning several series of RMBS. These functions include the following:
• Consultation on approach to determine damages.
• Consultation on relevant samples and sample sizes for data analysis.
• Performed loss and default analysis by originator.
• Compared losses and default percentages for various cutoff dates.
• Reviewed Securities underwriters due diligence approach and sample size selection against capital markets protocol.
• Engagement and oversight of due diligence firm to review loan files for compliance with underwriting guidelines, prospectus, and regulatory and legal compliance.
• Review of due diligence firm bifurcation of sample loans into compliant and non- compliant buckets.
• Matching on a loan level basis the losses incurred and comparing loss frequency and severity of compliant to non-compliant loan samples.
• Producing reports on all findings for inclusion in legal submissions.
• Hired as Expert Witness on eight separate cases by three different law firms.
The net result of these engagements has been a positive outcome for our clients in all the cases that have been settled to date.