The #1 Reason Consumers Sell Their Structured Settlements Is to Pay Bills, According to Survey by J.G. Wentworth : Current financial environment seen as catalyst for sales of ‘illiquid financial assets’

BRYN MAWR, Pa. (PRWEB) October 28, 2008

The survey represents some of the most concrete insights on the attitudes of the estimated 2 million Americans who hold some $ 100 billion in structured settlements. Structured settlements were introduced in the U.S. in the 1970s as an alternative to lump sum settlements of legal claims.

“What these survey findings tell us is that consumers are looking to tap into the value of illiquid financial assets like structured settlements,” said Ken Murray, chief marketing officer for J.G. Wentworth. “Approximately 71% of the surveyed consumers selling all or part of their structured settlements have held them for more than 10 years, and we believe that the current financial environment will accelerate that trend.”

While structured settlements provide a stream of payments over a defined period, often people find they need access to their funds now, whether to address immediate financial needs like paying bills or to plan for the future by starting a business, financing home improvement or paying for college tuition for themselves or family members, Mr. Murray noted.

“Structured settlements are established for many different reasons, and attempt to take into account the potential future needs of the plaintiff while providing a reliable source of income,” Mr. Murray said. “Unfortunately, the inflexibility of this structure can make it difficult to adapt to life’s events. Selling part or all of a structured settlement offers consumers the financial flexibility they may need to deal with a problem or take advantage of an opportunity.”

About the J.G. Wentworth family of companies

J.G. Wentworth, Inc., based in Bryn Mawr, PA, is the nation’s oldest, largest and most respected buyer of deferred payments for illiquid financial assets like structured settlements, annuities and, through dedicated subsidiaries, life insurance policies. Since 1992, J.G. Wentworth has purchased over $ 3 billion of future payment obligations from consumers and is also the nation’s largest securitizer of structured settlement and annuity backed notes. The company’s notes are rated AAA by Standard & Poor’s Corporation.

For more information about J.G. Wentworth, go to

More Securitization Press Releases

Multiple Control Failures To Blame For The Current Credit Crisis

New York, NY (PRWEB) February 25, 2009

The public has been quick to place sole responsibility for the crisis on the shoulders of bankers, and their perceived excesses. However in any crisis, be it a Depression, Fraud or Catastrophe such as the Three Mile Island Nuclear incident, it is not any one failure point, or person, that leads to a disaster but a confluence of more minor interlinked breakdowns.

A misplaced reliance and faith in mechanical risk models, possessing known flaws and weaknesses, were exploited throughout the mortgage chain.

Loan originators were actively encouraged to push high commission, high risk products, such as Adjustable Rate Mortgages, whilst at the same time over-inflating borrowers assets and under-stating borrowers expenses in order to generate mortgage flow for Wall Street. The controls in place designed to mitigate these abuses, such as obtaining substantiating documentation and 3rd party credit checks were often ignored, omitted or seldom verified.

Bankers packaged, split and combined these mortgages into Bonds backed by them. These bonds were subsequently securitized into Collateralized Debt Obligations (CDO) and then turned into ever more complex and esoteric products, such as CDO^2. These products were impossible to price given their complexity, lack of historic default & price performance information, thereby making management of the associated risks unattainable.

Bankers let the task of independently pricing and rating these securities prior to issuance with Rating Agencies leading to a conflict of interest as Rating agencies were paid for these ratings by the bond issuers. In addition to this moral hazard, Rating Agencies used overly simplistic risk and pricing models that did not take into account systemic risks, risks that the underlying assumptions used in their valuations would be moot due to “extraordinary” market conditions.

To protect themselves from unexpected losses on CDOs, sophisticated investors relied upon the purchase of a type of insurance contract, the Credit Default Swap which shared the same fundamental flaws in pricing and risk as the CDOs. Whilst the economic benefit of a CDS is sound in principle, the vast majority of these CDS were written and traded solely as a speculative play. As defaults increased to levels way beyond those used in the initial modeling of price and risk the perceived likelihood that the originating issuers of being burdened with “insurance” payouts that they will be unable to pay further added to market turmoil and systemic risk.

Industry regulators, bodies who’s task is to protect investors by maintaining the fairness of Capital Markets, must also bear a portion of the blame for the current crisis. Regulators were under staffed and over lobbied by financial institutions eager to remove rules designed to reduce the level of risk they could take on. In addition regulatory staff working at the coal face were seldom experienced and educated in the fields of risk management and were primarily concerned that the banks were following the rules set by the regulators, rules that possessed loopholes that institutions readily exploited.

In the end the credit crisis resulted from failures of many interrelated controls. Moral hazard over the way in which compensation was awarded, controls that were actively avoided, known flaws in risk models which were overlooked and the gatekeepers of the financial market were under funded and over lobbied. Such far ranging failures throughout the entire mortgage process demand a complete rethink on how financial products and markets are modeled, monitored and controlled.

About Crest Rider

Crest Rider Inc is a Management Consulting firm specializing in developing Risk & Governance solutions in the fields of Capital Markets, Investment Banking and Insurance

For more information, visit or contact Julian Fisher at 212 721 1580


Related Securitization Press Releases

Understanding the Current Securitization Process and it’s Problems for Creditors

(PRWEB) March 28, 2012

In an era where a very large portion of mortgage obligations have been securitized, foreclosure becomes an intriguing process for close examination by securitization reporters, legal counsel and related parties. In February of 2012, Lance Denha, principal attorney of the Law Offices of Lance Denha, noted that before the subprime boom, little mortgage securitization was utilized, leaving it instead to Fannie Mae and Freddy Mac. Today, the ongoing foreclosure epidemic in the U.S. continues to be a key factor in the global economic crisis and the securitization of millions of delinquent mortgages is at the forefront of the problem, says Mr. Denha.

Securitization is a complex series of financial transactions designed to maximize cash flow and reduce risk for debt originators. This is typically achieved when assets, receivables or financial instruments are acquired, classified into pools, and offered as collateral for third party investment. A typical Securitization process goes as follows: A borrower goes to a mortgage lender. The lender then finances the purchase of real estate. The borrower signs the note and mortgage or deed of trust. The original lender sells the note with hundreds or thousands of similar obligations to create a package of mortgage backed securities, which are then sold to investors as bonds. The mortgage payments are those received by an agent called a servicing company.

When a borrower defaults, the party seeking to enforce the obligation and foreclosure on the underlying collateral sometimes cannot find the note. It has been said by sophisticated attorneys in the industry that more than a third of the notes securitized have been lost or destroyed. In a decision by the Fifth District Court of Appeals on September 30, 2011 in the case of Gee v. U.S. National Association, as trustee, the court reversed a summary judgment which established that the traditional argument made by banks that the borrower defaulted so who cares if we have the right documents will no longer prevail in foreclosure actions.

This is especially the case when the judicial process is involved rather than the non judicial process reason being many defenses can be made by the defendant in a foreclosure defense case in court because at times it can be very difficult to determine the name of the holder of the note, the assignee of the mortgage, and the parties with both the legal right and standing under the Constitution to enforce notes, whether in state or federal court. Mr. Lance Denha states These cases can be highly defensible if not winnable. In Non Judicial Foreclosures whereby foreclosures are processed without court intervention, these types of foreclosures simply require certain types of notifications be sent to the homeowner and publication according to state statutory law. Homeowners should note that they have the ability and opportunity to convert these types of non judicial foreclosures into the judicial courts via filing wrongful foreclosure actions, temporary restraining orders, quiet title actions, etc. should they discover wrongdoing associated with their mortgage.

As reported by The Associated Press, foreclosure activity has surged across half of the United States. The pace is increasing after all 50 states reached a $ 25 billion settlement last month over foreclosure abuses. Many foreclosures had previously been stuck in limbo as the government investigation into foreclosure paperwork problems dragged on. The legal securitization and documentation of many of the nations five biggest mortgage lenders came into question, and is still a major point of scrutiny and legal defense.

It is highly advisable to seek legal expertise to determine the best course of action moving forward in order to gain an understanding of the particular direction best suited for the client. Lance Denha has professionally challenged foreclosures, negotiated any deficiency and sought out alternatives to foreclosure or other bankruptcy options. The Law Offices of Lance Denha has the prerequisite legal knowledge and expertise readily available to assist homeowners to stay in their homes. For further information or assistance, please call at 954-840-0770.

The Law Offices of Lance Denha Comments on the Current Leap in Foreclosures Exercise

(PRWEB) August 07, 2012

The housing market place has proven some promising indications of late, but a refreshing batch of foreclosures info delivers a reminder that any recovery from the housing bust will very likely be gradual, spotty and unpleasant. RealtyTrac reported Thursday that foreclosure filings rose by nine % in Could from a month previously, to 205,990 overall qualities that ended up topic to default notices, scheduled auctions or bank repossessions.


The jump in foreclosure exercise was most likely because lenders are ultimately receiving to a backlog of homes they may have started out foreclosing on final 12 months if they werent dealing with criticism for reducing corners and pushing foreclosures via also quickly and with no sufficient controls, stated Daren Blomquist, vice president with RealtyTrac. He famous that the significant boosts arrived from houses that are just commencing the foreclosures process. The robo-signing scandal, in which foreclosure documents were signed with no home reviewing personal instances, prompted financial institutions to hold back again on new foreclosures pending a settlement, as reported by ABC Information last yr.


Even now, the figures for May possibly are down four % from a 12 months in the past. In addition, latest income info implies that not all homes with foreclosures filings will outcome in the lender getting the home. Primarily based on the rise in pre-foreclosures product sales weve observed so much this 12 months, a higher percentage of these new foreclosure begins will very likely conclude up as limited sales or auction sales to third events fairly than lender repossessions going forward, Brandon Moore, RealtyTracs CEO, mentioned in a assertion. Lance Denha, Esq., of The Legislation Places of work of Lance Denha cautioned, even so, That while these other devices preclude the financial institutions from using direct possession of the property, the end end result is the property owner is dropping their residence without subjecting the bank to the extremely scrutiny that resulted in their $ 26 Billion settlement with forty nine Condition Attorney Generals just very last year. Property owners should comprehend that they have the ability and opportunity to change these kinds of non-judicial foreclosures into the judicial courts through filing wrongful foreclosure actions, short term restraining orders, tranquil title actions, and so on. must they learn wrongdoing linked with their mortgage.


Mr. Lance Denha additional extra that Numerous defenses can be created by the defendant (House owner) to stop their bank from forcing a limited sale or auction as properly as any repossession procedure by their lender. A securitization evaluation is 1 of the most potent equipment available to a foreclosure defense organization creating these cases highly defensible if not winnable. Blomquist observed that some of these homes coming into the foreclosures procedure will even now stop up becoming repossessed by the lender. In addition, the enhance in foreclosures action that is envisioned, as banking companies function via their backlog, could set a damper on housing costs after once again, at minimum in some components of the nation. I in fact think the stabilization in house rates and property sales, in element, is a result of the foreclosures stock becoming artificially limited over the earlier calendar year and a 50 percent, he explained.


It is hugely a good idea to seek out legal experience to determine the ideal program of motion moving forward in buy to obtain an comprehending of the specific course ideal suited for the client. The Regulation Workplaces of Lance Denha P.A. is committed to ensure that every achievable avenue is pursed so that the property owners authorized legal rights are preserved. Actively checking the at any time altering landscape of foreclosure regulations, current foreclosures across the nation as well as point out imposed policies and procedures associated with foreclosure, is important to ensure and shield these legal rights. The Regulation Offices of Lance Denha P.A. is a multistate regulation organization and will help legally protect wrongful foreclosures from house owners and make use of any and all lawful tactics accessible to aid complete preserving house owners rights. For even more data or assistance, make sure you contact at 954-840-0770.