RALI MBS Litigation
http://ralimbslitigation.com

Frequently Asked Questions

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General Information

1.      What is the current case status?

The Court issued an Order and Final Judgment approving the Settlement on July 31, 2015. On July 5, 2016 the Court entered its Order of Distribution of the Gross Global Settlement Fund authorizing distribution of the Gross Global Settlement Fund. The initial distribution commenced on September 23, 2016.

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2.      How can I request a replacement check?

If you require a replacement check, you need to submit a written request, stating your name, claim number, current address, and reason a new check is required. This request can be submitted in writing to:

RALI MBS Litigation
c/o Garden City Group, LLC
P.O. Box 9991
Dublin, OH 43017-5991

Or email to: info@RALIMBSLitigation.com

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3.      Why did I get the notice package?

The Notice was sent to you pursuant to an order of the United States District Court for the Southern District of New York (the “Court”) because you or someone in your family may have purchased or otherwise acquired an interest in one or more of the Certificates and/or the ResCap Settlement Certificates described therin. The Court has directed us to send you the Notice because, as a potential member of the Underwriter Settlement Class and/or the ResCap Settlement Class, you have a right to know about your options before the Court rules on the Underwriter Settlement in this case, as well as the Global Settlement Plan of Allocation and the attorneys’ fees and Litigation Expenses that may be awarded from the Gross Global Settlement Fund. Additionally, you have the right to understand how a class action lawsuit may generally affect your legal rights.

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4.      What are the lawsuits about?

On September 22, 2008, Lead Plaintiff commenced the Action by filing a complaint styled New Jersey Carpenters Health Fund v. RALI Series 2006-QO1, et al., Index No. 2008/602727 (the “State Court Complaint”), in the New York State Supreme Court, New York County. The State Court Complaint asserted claims under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 (the “Securities Act”) for alleged misstatements and omissions in the Offering Materials for 13 offerings of mortgage asset-backed pass-through certificates. A more detailed accounting of what has happened so far can be found in the Notice on this website.

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5.      Why are these class actions?

A class action is a type of lawsuit in which the claims of a number of individuals are resolved together, thus providing the class members with both consistency and efficiency. In a class action lawsuit, a court selects one or more people, known as class representatives or lead plaintiffs, to sue on behalf of all people with similar claims, commonly known as the class or the class members. Once the class is certified, the court must resolve all issues on behalf of the class members.

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6.      Why is there a settlement?

The Court did not decide in favor of Plaintiffs or Defendants, who continue to deny liability. Instead, both sides agreed to a settlement. That way, they avoid the cost and risks of further litigation and trial. Additional information regarding the Parties’ reasons for entering into the Settlement can be found in the Notice.

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7.      How do I know if I am affected by the Underwriter Settlement and/or the ResCap Settlement?

If you are a member of the Underwriter Settlement Class, you are subject to the Underwriter Settlement unless you timely and validly requested to be excluded. The Underwriter Settlement Class consists of:

All Persons who purchased or otherwise acquired interests in the Certificates on or before the date when a claim concerning those Certificates was first asserted in the Action (i.e., the Date of First Suit).

Excluded from the Underwriter Settlement Class are those Persons who have filed a timely and valid request for exclusion in accordance with the requirements set forth in the Notice. Also excluded from the Underwriter Settlement Class are the Underwriter Defendants.

If you are a member of the ResCap Settlement Class, you are subject to the ResCap Settlement unless you timely filed a request to be excluded in response to the notice issued to potential members of the ResCap Settlement Class on or after July 10, 2013 pertaining to the ResCap Settlement. The ResCap Settlement Class, consists of all persons or entities who purchased certificates or otherwise acquired beneficial interests in any of the following fifty-nine (59) RALI trusts: RALI Series 2007-QS1, RALI Series 2007-QO4, RALI Series 2007-QH4, RALI Series 2006-QO7, RALI Series 2007-QS5, RALI Series 2006-QS7, RALI Series 2007-QO2, RALI Series 2006-QS11, RALI Series 2007-QS4, RALI Series 2006-QA4, RALI Series 2006-QA6, RALI Series 2006-QA7, RALI Series 2006-QA8, RALI Series 2006-QA10, RALI Series 2006-QA11, RALI Series 2007-QA1, RALI Series 2007-QA2, RALI Series 2007-QO3, RALI Series 2007-QA3, RALI Series 2007-QA5, RALI Series 2007-QH8, RALI Series 2007-QH9, RALI Series 2007-QO5, RALI Series 2007-QS11, RALI Series 2007-QS6, RALI Series 2006-QS8, RALI Series 2006-QS9, RALI Series 2007-QS7, RALI Series 2007-QH2, RALI Series 2007-QH5, RALI Series 2007-QH6, RALI Series 2006-QS18, RALI Series 2006-QO10, RALI Series 2006-QO3, RALI Series 2006-QO6, RALI Series 2007-QH3, RALI Series 2007-QS2, RALI Series 2006-QO9, RALI Series 2006-QO8, RALI Series 2006-QO5, RALI Series 2006-QA5, RALI Series 2006-QA9, RALI Series 2006-QH1, RALI Series 2006-QO4, RALI Series 2006-QS5, RALI Series 2006-QS16, RALI Series 2006-QS17, RALI Series 2007-QH1, RALI Series 2007-QO1, RALI Series 2007-QS3, RALI Series 2007-QA4, RALI Series 2007-QH7, RALI Series 2007-QS8, RALI Series 2007-QS10, RALI Series 2006-QS12, RALI Series 2006-QS13, RALI Series 2006-QS6, RALI Series 2007-QS9, and RALI Series 2006-QS15, and who failed to timely submit a request to be excluded. Excluded from the ResCap Settlement Class are the Defendants (as defined in the ResCap Stipulation), and their respective officers, affiliates and directors at all relevant times, members of their immediate families and their legal representatives, executors, estates, administrators, successors and assigns, insurers, and any entity in which any Defendants (as defined in the ResCap Stipulation) have or had a controlling interest, provided that any Investment Vehicle (as defined in the ResCap Stipulation) shall not be deemed an excluded person or entity by definition.

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8.      How do I determine which of the three Underwriter Groups my certificates are in?

Underwriter Settlement Group 1 (the “Underwriter Settlement Ten Trading Day Claimants”) will be composed of those members of the Underwriter Settlement Class who purchased or otherwise acquired Certificates issued by any of the following sixteen (16) RALI trusts listed below directly from an underwriter or its agent within ten (10) trading days of the date when their Certificates were first publicly offered (the “Ten Trading Day Period”) except for the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal Housing Finance Agency acting as conservator for either such entity. Corresponding Certificates and Offering dates can be found at Table A on this website.

Underwriter Settlement Group 2 (the “Underwriter Settlement Outside Ten Day Trading Day Claimants”) will be composed of those members of the Underwriter Settlement Class who purchased or otherwise acquired Certificates issued by any of the following sixteen (16) RALI trusts listed below but who (i) either did not purchase their Certificates directly from an underwriter or its agent, or who purchased their Certificates outside the Ten Day Trading Period, or both or (ii) are the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or the Federal Housing Finance Agency acting as conservator for either such entity. Corresponding Certificates and Offering dates can be found at Table A on this website.

RALI Series 2006-QO3 RALI Series 2007-QS1
RALI Series 2006-QO5 RALI Series 2007-QS2
RALI Series 2006-QS7 RALI Series 2007-QS5
RALI Series 2006-QO6 RALI Series 2007-QH2
RALI Series 2006-QS8 RALI Series 2007-QH3
RALI Series 2006-QO7 RALI Series 2007-QH4
RALI Series 2006-QS15 RALI Series 2007-QH5
RALI Series 2006-QO10 RALI Series 2007-QH6

Underwriter Settlement Group 3 (the “Underwriter Settlement Dismissed Claimants”) will be composed of those members of the Underwriter Settlement Class who purchased or otherwise acquired Certificates in any of the following four (4) RALI trusts. Corresponding Certificates can be found at Table A on this website.

RALI Series 2006-QH1 RALI Series 2006-QO2
RALI Series 2006-QO1 RALI Series 2007-QH1

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9.      How do I determine which of the three ResCap Groups my certificates are in?

ResCap Settlement Group 1 will be composed of those ResCap Settlement Certificate holders (the “ResCap Settlement Ten Trading Day Claimants”) who purchased or otherwise acquired ResCap Settlement Certificates issued by any of the following twenty two (22) RALI trusts below directly from Defendants or their agents within ten (10) trading days of the date when their ResCap Settlement Certificates were first publicly offered (the “Ten Trading Day Period”) except for the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal Housing Finance Agency acting as conservator for either such entity. Corresponding Certificates and Offering dates can be found at Table A on this website.

ResCap Settlement Group 2 will be composed of those ResCap Settlement Certificate holders (the “ResCap Settlement Outside Ten Trading Day Claimants”) who purchased or otherwise acquired ResCap Settlement Certificates issued by any of the following twenty two (22) RALI trusts below but who (i) either did not purchase their ResCap Settlement Certificates directly from Defendants or their agents, or who purchased their ResCap Settlement Certificates outside the Ten Day Trading Period, or both or (ii) are the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or the Federal Housing Finance Agency acting as conservator for either such entity. Corresponding Certificates and Offering dates can be found at Table A on this website.

RALI Series 2007-QS5 RALI Series 2006-QS7 RALI Series 2006-QS18
RALI Series 2007-QH2 RALI Series 2006-QS8 RALI Series 2006-QS11
RALI Series 2007-QH5 RALI Series 2006-QO3 RALI Series 2006-QS9
RALI Series 2007-QH6 RALI Series 2006-QO6 RALI Series 2006-QO7
RALI Series 2006-QO10 RALI Series 2006-QO5 RALI Series 2007-QH4
RALI Series 2007-QH3 RALI Series 2007-QO2 RALI Series 2007-QS1
RALI Series 2007-QS2 RALI Series 2007-QS4 
RALI Series 2006-QS15 RALI Series 2007-QS7 

ResCap Settlement Group 3 will be composed of those ResCap Settlement Certificate holders (“ResCap Settlement Dismissed Claimants) who purchased or otherwise acquired ResCap Settlement Certificates in any one of the following thirty seven (37) RALI trusts. Corresponding Certificates can be found at Table A on this website.

RALI Series 2007-QS10RALI Series 2007-QO4RALI Series 2006-QA4
RALI Series 2007-QA4RALI Series 2007-QO5 RALI Series 2006-QA6
RALI Series 2006-QA9 RALI Series 2007-QS11 RALI Series 2006-QA7
RALI Series 2007-QO1 RALI Series 2007-QS6 RALI Series 2006-QA8
RALI Series 2006-QA10 RALI Series 2007-QH1 RALI Series 2006-QS12
RALI Series 2006-QA11 RALI Series 2007-QS9 RALI Series 2006-QS13
RALI Series 2007-QA1 RALI Series 2006-QO8 RALI Series 2006-QS6
RALI Series 2007-QA2 RALI Series 2006-QO9 RALI Series 2006-QH1
RALI Series 2007-QO3 RALI Series 2007-QH7 RALI Series 2006-QS5
RALI Series 2007-QA3 RALI Series 2006-QS17 RALI Series 2006-QA5
RALI Series 2007-QA5 RALI Series 2006-QS16 RALI Series 2006-QO4
RALI Series 2007-QH8 RALI Series 2007-QS3 
RALI Series 2007-QH9 RALI Series 2007-QS8 

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10.      Are there exceptions to being included?

Yes. You are not a Class Member if you are a Defendant in the Actions; a member of the Individual Defendants’ immediate families; any entity in which any Underwriter Defendant has a majority interest; any entity in which any other Defendant has a majority or controlling interest; any person who was an officer, director, partner, or controlling person of any Defendant during the Class Period; or the legal representatives, heirs, successors and assigns of any such person or entity. Additionally, anyone who previously submitted a valid and timely request for exclusion from the Class, in accordance with the procedures set forth in the Notice, is not considered a Class Member and cannot participate in the Settlement.

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11.      What if I am still not sure if I am included?

If you are still not sure whether you are included in the Class, you can ask for free help. You can contact the Court-authorized claims administrator, Garden City Group, LLC. by calling (888) 985-9201 (toll-free), sending an e-mail to info@RALIMBSLitigation.com, or writing to RALI MBS Litigation, c/o Garden City Group, LLC., P.O. Box 9991, Dublin, Ohio 43017-5991.

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12.      What does the Settlement provide?

In exchange for the Settlement and dismissal of the Actions, the Defendants, have agreed to create a $335 million Global Settlement Fund to be distributed, after various Court-approved fees and expenses, among all Class Members who submit valid Proof of Claim forms (“Authorized Claimants”). Additional information regarding the Settlement can be found in the Notice.

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13.      How much will my payment be?

The $335 million settlement amount, and the interest earned thereon, if any, shall be the Gross Global Settlement Fund. The Gross Global Settlement Fund, less all taxes, approved costs, fees and expenses (the “Net Global Settlement Fund”), shall be distributed to the Authorized Claimants (as defined in the Notice). The Net Global Settlement Fund will be distributed to Authorized Claimants who timely submit acceptable Proof of Claim forms under the Plan of Allocation, or as otherwise ordered by the Court.

Your share of the Net Global Settlement Fund will depend on your involvement on the ResCap Settlement and/or Underwriter Settlement, the aggregate number of Certificates (represented by valid and acceptable Proof of Claim forms) that members of the Class submit to the Claims Administrator, relative to the Net Settlement Fund; how many Certificates you purchased or otherwise acquired; whether the claims related to those Certificates are represented by named Plaintiffs; whether the claims related to those Certificates are “live” or have been dismissed; whether you held or sold those Certificates; the date on which you sold those Certificates; the amount of principal payments received on those Certificates; and the price at which you sold them. At this time, it is not possible to determine how much individual Class Members may receive from the Settlement.

A Class Member’s “Recognized Claim” will be calculated pursuant to the proposed Plan of Allocation set forth on pages 11-14 of the Notice, or other plan of allocation approved by the Court.

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14.      How can I get a payment?

To qualify for a payment, you must have previously submitted a timely and valid Proof of Claim form, postmarked no later than July 3rd 2015.

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15.      When will I get my payment?

On July 5, 2016 the Court entered its Order of Distribution of the Gross Global Settlement Fund authorizing distribution of the Gross Global Settlement Fund. The initial distribution commenced on September 23, 2016.

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16.      What am I giving up to get a payment or stay in the Class?

Unless you previously excluded yourself, you will stay in the Underwriter Settlement Class, which means that as of July 31, 2015 , you forever gave up and released all “Released Claims” (as defined in ¶ [86] of the Notice) against the “Released Underwriter Defendant Parties” (as defined in ¶ [87] of the Notice). You will not in the future be able to bring a case asserting any of the Released Claims against any of the Released Underwriter Defendant Parties.

In addition, the Settling Underwriter Defendants (as defined in ¶ [91] pf the Notice), as of July 31.2015 , forever gave up and released all “Release Underwriter Defendants Claims” (as defined in ¶ [88] of the Notice) against the “Released Plaintiff Parties” (as defined in ¶ [89] of the Notice).

If you remained a member of the Class, all of the Court’s orders apply to you and legally bind you.

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17.      How do I exclude myself from the Class?

Exclusion Requests must have been received no later than June 22, 2015.

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18.      If I did not exclude myself, can I sue the Defendants and the other Released Parties for the same thing later?

No. Unless you properly excluded yourself, you gave up any rights you may have had to sue the Defendants and the other Released Parties for any and all Settled Claims. If you did not exclude yourself from the Class in accordance with the requirements set forth in the Notice, you will not be entitled to receive any recovery in any other action against any of the Released Parties based on or arising out of the Settled Claims. Exclusion Requests must have been received on or before June 22, 2015.

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19.      If I excluded myself, can I get money from the proposed Settlement?

No. If you excluded yourself, do not send in a Proof of Claim form to request any money. However, you may exercise any right you may have to sue, continue to sue, or be part of a different lawsuit against the Defendants and the other Released Parties.

Should you have elected to exclude yourself from the Class, you should understand that Defendants will have the right to assert any and all defenses they may have to any claims that you may seek to assert, including without limitation the defense that any such claims are untimely under applicable statutes of limitations and statutes of repose pursuant to the rulings described above previously issued by the Court, by any other Court, or otherwise. Although Defendants have decided to settle the Actions in their entirety in order to avoid the continuing expense of litigation and for the other reasons described in this Notice, Defendants will retain and are not waiving in any way the right to assert that the claims asserted by any individual Class Members who elect not to participate in the Settlement are time-barred, are otherwise subject to dismissal, or otherwise lack merit.

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20.      Do I have a lawyer in these cases?

The Court appointed the law firm of Cohen Milstein Sellers & Toll PLLC Lead Counsel.

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21.      How will the lawyers be paid?

On July 31, 2016 the Court entered its Order on Lead Counsel’s Motion for an Award of Attorneys’ Fees and Reimbursement of Litigation Expenses. Lead Counsel was awarded attorney’s fees in the amount of 20.75% (or $69,512,500.00) of the Global Settlement Fund and $3,922,092.49 in reimbursement of legal expenses.

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22.      How do I tell the Court that I object to the proposed Settlement?

Objections must have been received on or before July 1, 2015.

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23.      What is the difference between objecting and excluding?

Objecting is telling the Court that you do not like something about the proposed Settlement. You can object only if you stay in the Class and follow the objection procedures described above. Excluding yourself is telling the Court that you do not want to be part of the Class. If you exclude yourself from the Class, you have no basis to object because the Actions no longer affect you. Objections must have been received on or before July 1 2015, Exclusion Requests must have been received on or before June 22, 2015.

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25.      What happens if I do nothing at all?

If you do nothing, you will get no money from this Settlement and you will be precluded from starting a lawsuit, continuing with a lawsuit, or being part of any other lawsuit against the Defendants and the other Released Parties concerning the Settled Claims, ever again.

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26.      Are there more details about the Settlement?

The Notice summarizes the Order and Final Judgment. More details are contained in the Settlement Agreement dated as of February 11, 2015, a copy of which can be found in the Court Documents section of this website.

You also can call the Claims Administrator toll-free at (888) 985-9201 (toll-free), sending an e-mail to info@RALIMBSLitigation.com, or writing to RALI MBS Litigation, c/o Garden City Group, LLC., P.O. Box 9991, Dublin, Ohio 43017-5991.

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27.      How do I get more information?

Additional information concerning the matters involved in these Actions and the Settlement is available on this website, including, among other documents, copies of the Settlement Agreement, important Court Orders and the operative complaints. For more detailed information, you are referred to the papers on file in the Actions, most of which may be inspected at the Office of the Clerk of the United States District Court for the Southern District of New York, United States Courthouse, 40 Foley Square, New York, New York 10007, on weekdays (other than court holidays) between 10:00 a.m. and 4:00 p.m.

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