home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.

Mortgage Law Insider

Recent mortgage related litigation

August 29, 2007

WASHINGTON correspondent for MortgageDaily.com

Among two lawsuits recently dismissed was one filed by Wachovia Corp. against a real estate investment trust. But a settlement by another REIT with borrowers in Washington state was only met with a similar lawsuit filed by California borrowers.

Wachovia's dismissal came just a day after Thornburg Mortgage returned $5.1 million it owed a Wachovia banking unit from a series of derivatives transactions.

Wachovia spokeswoman Christy Phillips-Brown said, "We received payment on the obligation and, as a result, we voluntarily dismissed the case."

Thornburg is a Santa Fe, N.M.-based residential-mortgage REIT focused principally on the jumbo segment of the mortgage market.

Thornburg spokeswoman Suzanne O'Leary Lopez, said the company met its obligation in full and that the matter has been resolved. "We are pleased to put this matter behind us and to continue to focus on the fundamentals of our business," she added.

Wachovia Bank filed the lawsuit last week in the U.S. District Court for the Southern District of New York, seeking more than $5.1 million plus interest and legal expenses for failure to honor derivatives contracts, including a series of interest rate swaps entered into in Oct. 2003.

The suit alleged that Thornburg, which had to recently halt new mortgage rate locks due to a secondary market freeze up for nonconforming mortgages, had breached an agreement between the two "by refusing to pay Wachovia" the amount due.

According to suit papers, "Thornburg Mortgage informed Wachovia that it intends to continue to pay other, unrelated counter parties with which it has established business relationships before it pays Wachovia."

Another lawsuit, alleging violation of Florida's "Do Not Call" law, has also been dropped.

Florida v. Global Mortgage Funding Inc. was dismissed because California-based Global Mortgage has declared bankruptcy, according to Terence McElroy, a spokesman for the Florida state department that filed the lawsuit. McElroy said the Leon County Circuit Court judge handling the case will allow the lawsuit to be re-opened after the bankruptcy proceeding ends.

NovaStar Financial, recently no stranger to litigation, is facing a lawsuit in federal court in San Francisco from California borrowers who claim the subprime mortgage lender charged them a higher interest rate on their loans because their mortgage brokers did not disclose the payment of yield spread premiums.

The California case, Kubiak, et al., v. NovaStar Mortgage, was filed in the United States District Court for the Northern District of California early this summer. The lawsuit comes on the heels of a settlement for $5.1 million for Washington homeowners who made similar accusations against the beleaguered subprime giant.

NovaStar, a REIT, has not yet filed a response in the California litigation.

Lisa D. Burden is a legal analyst for MortgageDaily.com and holds a law degree from the University of Maryland. She is currently a freelance journalist who previously wrote for Institutional Investor publications and the Baltimore Daily Record.

e-mail Lisa at: [email protected]

Mortgage REIT news | REIT Directory
Coverage of real estate investments trust companies, litigation and corporate activity.

Yield Spread Premiums
Yield spread premium issues, studies and lawsuits. Mortgage wholesaler YSPs paid to mortgage brokers.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders