Growing threat hangs over legacy mortgage bonds
Investors including US mortgage giant Fannie Mae holding decade-old residential mortgage bonds are fretting over potentially huge losses on securities where delayed foreclosures could lead to complete write-offs on defaulted loans. “If a foreclosure runs afoul of the statute of limitations, it's a problem,” said Bruce Bergman, a partner at Berkman Henoch Peterson Peddy & Fenchel, a New York law …