NEW YORK, Aug. 22, 2014 /PRNewswire/ -- The first homeowner class action of its kind was filed in NY federal court, seeking to intervene in the largest lawsuit involving toxic assets and mortgage-backed securities. The lawsuit pending in NY federal court was initially filed by the federal government (Federal Housing Finance Agency) against 16 of the national and international banks involved in mortgage backed securities fraud.
Class Plaintiffs believe that this lawsuit should have included homeowners from the beginning. Instead, FHFA has sued the 16 banks for billions of dollars, but homeowners who lost their homes or are being foreclosed on, are not included in the case. Some of the institutions have already settled with FHFA, but the Billions of US dollars are not being used to compensate those who lost their homes through foreclosures. Prior to settlement of all of the cases, plaintiffs are seeking to intervene to protect their interests, having been deprived of their right to stay in their homes, due to the banks' fraudulent conduct. Billions of taxpayer dollars were used to bail out many of the same banks. The banks are now settling for a few billion dollars, and essentially returning tax payer dollars to the federal government. Plaintiffs would like to know why, if this is one of the premier mortgage backed-securities lawsuits ever filed, foreclosed homeowners do not have a seat at the table.
"There is an unholy alliance between the banks and the federal government in relation to the economic crisis resulting from the mortgages issued, and those affected should be involved in this lawsuit," said the attorneys William Sanchez and John de Leon in connection with this law suit.
The lawsuit was filed by two law firms: William Sanchez, P.A. and Associates, and Chavez and de Leon P.A. Mr. Sanchez is a former White House appointee who previously served in the Department of Justice as Special Counsel. The Law Offices of Chavez and de Leon, P.A. a law firm that has successfully handled cases throughout the country, is led by Fernando Chavez, a successful California plaintiffs' attorney and eldest son of famed civil rights leader Cesar Chavez. John de Leon is a past president of the greater Miami's ACLU, and an accomplished lawyer who recently represented the artist who was charged for dropping a vase of the renowned artist Ai Weiwei and local counsel against Gov. Rick Scott in the successful voting rights case brought regarding the election in Florida.
SOURCE William Sanchez, P.A. and Associates; Law Offices of Chavez and de Leon, P.A.