Mortgage Lawsuits Balloon – Mortgage Industry Insider from MortgageDaily.com
DALLAS, April 9 /PRNewswire/ Mortgage litigation is growing, according to cases chronicled by https://www.mortgagedaily.com — the dominant source of online news for the mortgage industry.
DLJ Mortgage Capital filed a lawsuit against Sunset Direct Lending seeking nearly $24 million in repurchases, a spokesman for DLJ’s parent told MortgageDaily.com. Another suit was filed against Infinity Home Mortgages for $3 million.
The spokesman said in both cases the loans became delinquent shortly after purchase by DLJ. (https://www.mortgagedaily.com/LawsuitsDlj040207.asp)
Another lawsuit by DLJ for $4 million alleges NetBank failed to forward borrower payments, neglected to pay mortgage insurance and refused to comply with requests for mortgage insurance information, the spokesman said.
Morgan Stanley Mortgage Capital Inc. has sued Baltimore American Mortgage Corp. seeking indemnification for losses and expenses it incurred when the lender failed to cure or repurchase 32 loans.
Although Morgan Stanley gave notice of these defaults to Baltimore American on five occasions, the lender “neither cured the breaches nor repurchased any of the defaulted loans as required under the sale agreements,” according to the suit. (https://www.mortgagedaily.com/LawsuitMorganStanley040307.asp)
Option One Mortgage Corp. is being sued by a former originator who claims the company failed to pay overtime. But a spokeswoman denied the allegations and said the company pays properly authorized overtime.
“The lawsuit has not been served on us,” she said. “We, however, assume that the class allegations are similar to previous lawsuits … which were dismissed by the courts.” (https://www.mortgagedaily.com/LawsuitOptionOne040407.asp)
EMC Mortgage Corp. has been sued by Performance Credit Corp. over claims it delayed the purchase of subprime mortgages — driving down their value by more than $20 million, according to a SEC filing.
EMC allegedly agreed to purchase and securitize all of its monthly loan production and assume responsibility for any early payment defaults. But because EMC delayed the acquisition of loans, Performance claims it lost more than $20 million.
“Based on our preliminary review, we believe this case is without merit,” the head of Bear’s fixed income communications told MortgageDaily.com. (https://www.mortgagedaily.com/LawsuitEcc040507.asp)
Complete mortgage litigation at: https://www.mortgagedaily.com/legal.asp
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Press: Shaun Bartlett
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