Mortgage Backed-Securities (MBS), also termed Mortgage Securitization, refers to an investment security that is a pool of mortgage loans.  If the loans default, the investor who purchased the security will suffer losses.  If the investment contains only loans made to Subprime borrowers, involves junior liens, or if the loans were issued without proper due diligence and paperwork, the likelihood of investor losses goes up.   When these factors are combined with a tightening of credit, falling real estate values and a recession, you have a disaster scenario for MBS investors that is nothing short of a crime.

If you are an investor who has suffered losses due to a MBS recommended by a stockbroker or financial adviser, you may be able to recover your losses.  Stockbrokers and financial advisers are required to conduct due diligence into investments before making an investment recommendation.  All investment recommendations must be reasonable and suitable for the client, who is entitled to rely on the knowledge and expertise of the adviser.  If a stockbroker or financial adviser acts fraudulently, recklessly or negligently when making a recommendation, the stockbroker or adviser, and his or her firm, are liable for investment losses resulting from their misconduct.

If you have questions about whether you can recover MBS losses, please call us at 1-800-306-6010 or contact us online.