Home / Media / DS News Webcast: Thursday 2/11/2015
Print This Post Print This Post

DS News Webcast: Thursday 2/11/2015

Attorneys for investment firm Morgan Stanley made a motion in the New York Supreme Court Tuesday to have two lawsuits filed by the Federal Housing Finance Agency accusing the firm of failing to buy back $2.5 billion worth of faulty residential mortgage-backed securities. FHFA, which is suing on behalf of the RMBS pools' trustees, claims that Morgan Stanley committed a breach of contract by failing to buy back the poor performing loans, which were pooled into securities and sold to Freddie Mac in 2007.

Morgan Stanley has had ongoing legal troubles in the last year with regards to its sales of RMBS prior to the financial crisis, resulting in a series of settlements totaling hundreds of millions. In February 2014, the firm settled a separate lawsuit filed by FHFA for 1 point $25 billion over the selling of faulty RMBS to Fannie Mae and Freddie Mac during the run-up to the financial crisis. In July 2014, Morgan Stanley agreed to pay $275 million to investors for allegedly misrepresenting the delinquency status of subprime mortgage loans in 2007.

A Los Angeles law firm announced a new class action lawsuit against Home Loan Servicing Solutions, making it the latest in a line of suits filed against the mortgage company over its relationship with Ocwen. In its complaint, Glancy Binkow & Goldberg alleges that HLSS, which deals in the acquisition of mortgage servicing assets, made misleading statements and failed to disclose to investors how much its own business depended on Ocwen's and the extent of Ocwen's troubles.

About Author: Jordan Funderburk


Check Also

How AI Will Transform the Mortgage Industry

A panel of experts discussed how the rise and adoption of AI will help tackle some of the biggest challenges faced by the industry at MReport’s “Intelligent Lending: The Rise of AI” webinar. Here’s what they had to say.


Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.