SUNY Polytechnic Institute (SUNY Poly) Interim Dean of the College of Business Dr. Rafael Romero and Assistant Professor of Accounting Dr. Katie Matt recently published research titled, “Residential Mortgage-Backed Loan Securitization: Breach of Contract Evidence,” in the Global Journal of Business Research.

Together they discovered that a financial company’s failure to fulfill its obligations related to the securitization of around 6,000 residential mortgage loans sold to a Trust for more than $1 billion dollars resulted in a breach of contract. As a result, the Trust suffered a loss of about half a billion dollars, indicating that the financial company had no intention of complying with its contractual obligations. Therefore, the Trustee must be reimbursed for the losses incurred. 

Drs. Romero and Matt focused on analyzing for breach of contract evidence, helping to understand areas of litigation and concerns surrounding Residential-Mortgage Back Securities.

To read their research, click here.