Merrill Sued for $309 Million by Trust Over Mortgages
A unit of Bank of America Corp.’s Merrill Lynch was sued by a trust seeking more than $309 million in damages for alleged breaches of representations and warranties related to the sale of more than 5,000 mortgages.
The trust filed the lawsuit in New York State Supreme Court in Manhattan yesterday, accusing Merrill Lynch Mortgage Lending of failing to buy back loans as required by agreements reached in 2007, according to a court filing.
The trust also accused Merrill Lynch and H&R Block Inc. (HRB)’s Sand Canyon unit of breaching similar representations and warranties made about other mortgage loans. Sand Canyon, formerly known as Option One Mortgage Corp., stopped originating mortgage loans in December 2007, sold its servicing assets to American Home Mortgage Servicing, and discontinued remaining operations in April 2008.
Merrill Lynch in or about 2007 securitized more than 5,900 residential mortgage loans from two separate originators to serve as the basis for securities sold to investors, the trust said in the court filing. The loans were eventually sold to Merrill Lynch Mortgage Investors and then conveyed to the trust, which were then sold to investors.
Rest here…
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Is there a list of the mortgages sued iver. Anyone know if there is discovery on the valuation of notes
Except that they weren’t ever actually conveyed to the Trust….they should re-write that sentence.