Who is Talcott Franklin? He’s the world’s next zillionaire, that’s who. Talcott is an attorney in Dallas who apparently is spearheading an effort to group together mortgage bond investors to gain power to challenge loan servicers over losses the investors claim resulted from violations in securities contracts. “A group holding a third of the $1.5 trillion mortgage bond market has topped the key 25 percent threshold for voting rights on 2,300 ‘private-label’ mortgage bonds.” Reaching this level supposedly gives holders the means to identify misrepresentations in loans, and possibly force repurchases by banks. Individuals don’t have access to the information, but a large group may – so not only are Fannie & Freddie forcing buy backs, but now this group may be in a position to do the same. Talcott Franklin’s clients, per his press release, represent more than $500 billion in securities (private label) managed for pension funds, 401(k) plans, endowments, and governments.
-Rob Chrisman
