The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

Investors to Request Buy Backs of Option One Mortgage Corporation Originated Loans

Monday, May 09, 2011

Investors to Request Buy Backs of Option One Mortgage Corporation Originated Loans17:45 EDT Monday, May 09, 2011DALLAS, May 9, 2011 /PRNewswire/ -- Certain large holders of residential mortgage-backed securities containing loans originated by Option One Mortgage Corporation are requesting that Option One repurchase loans that were improperly originated or documented and sold into securitization trusts. The holders have retained Talcott Franklin P.C. to organize and pursue the investor request.Investor clients of Talcott Franklin P.C. presently hold over 25% of the Voting Rights in at least 64 trusts containing Option One loans. To prioritize recovery efforts, the firm is asking investors to submit their voting rights in favor of seeking recoveries on loans sold to the trusts in violation of certain representations and warranties. The firm intends to send instructions to the trust administrators on a trust-by-trust basis, as the requisite percentages of voting rights are assembled for each trust."As with many of these transactions, the damages may exceed the available funds for recovery, so we are encouraging investors to submit their holdings quickly so we can instruct the trust administrators as to their deals," said Talcott J. Franklin, principal of the firm.Option One Mortgage Corporation is now known as Sand Canyon Corporation and is a wholly owned subsidiary of H&R Block, Inc. (NYSE: HRB).The firm will hold several conference calls on the issue. For dial-in information and times, email For further information on this release, contact Talcott J. Franklin at 214.321.3838 or Talcott Franklin P.C.Talcott Franklin P.C. primarily pursues investor rights in securitization transactions. The firm founded the RMBS Clearing House, which allows investors to seek confidential legal advice concerning their collective action rights in conjunction with other clients of the firm. The firm currently represents foreign and domestic clients who collectively hold over half of the outstanding balance of private label RMBS certificates.This press release may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee a similar outcome. Unless stated otherwise on the firm web site, attorneys are not certified by the Texas Board of Legal Specialization. Additional notices can be read at Talcott Franklin P.C.