US Bank Took Shortcuts With MBS Loan Docs: Suit

Law360, New York (November 10, 2011, 1:29 PM EST) -- An Oklahoma pension fund filed a putative class action against U.S. Bank NA on Thursday alleging the bank's shortcuts, including a failure to actually take possession of loan documents underlying mortgage-backed securities, cost the fund hundreds of millions of dollars.

Because the bank never actually transferred the mortgages notes on hundreds of underlying mortgages, investors are entitled to unwind the MBS purchase and reclaim their payments, according to the complaint filed by the Oklahoma Police Pension and Retirement System in New York federal court.

“U.S. Bank’s...
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