FHFA Sues To Force HSBC To Buy Back RMBS

Law360, New York (September 26, 2012, 4:07 PM EDT) -- The Federal Housing Finance Agency sued HSBC Finance Corp. in New York state court Wednesday, claiming it failed to repurchase certain securitized residential mortgages subject to agreements its former mortgage unit had allegedly breached.

Decision One Mortgage Co. LLC, a now-defunct wholesale lender HSBC shed in 2007, allegedly promised that in the event of a default, it would buy back the residential mortgage loans making up a pool secured by Morgan Stanley. Now HSBC, as successor-in-interest to Decision One, is now liable for the loans, which...
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