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Tuesday, February 28, 2012

Goldman Sachs and Wells Fargo receive Wells notices from SEC

by Calculated Risk on 2/28/2012 09:03:00 PM

From HousingWire: Wells Fargo, Goldman receive Wells notices over MBS disclosures

Wells Fargo and Goldman Sachs received Wells notices over mortgage-backed securities disclosures, according to regulatory filings.

Goldman Sachs disclosed the Wells notice in its 10-K, while Wells reported the notice in its 2011 annual report to shareholders.

The notice from the Securities and Exchange Commission concerns "the disclosures contained in the offering documents used in connection with a late 2006 offering of approximately $1.3 billion of subprime residential mortgage-backed securities underwritten by GS&Co.," Goldman said in its regulatory filing. "The firm will be making a submission to, and intends to engage in a dialogue with, the SEC staff seeking to address their concerns."

At Wells Fargo, the Wells notice also relates to the bank's disclosures in mortgage-backed securities offering documents.
The earlier Goldman settlement was related to CDO derivatives (Collateralized Debt Obligations). Now the SEC is investigating the securitization of the underlying MBS.

Earlier on House Prices:
Case Shiller: House Prices fall to new post-bubble lows in December
Real House Prices and Price-to-Rent fall to late '90s Levels
All current house price graphs