Morgan Stanley Files $10M Suit Over Bad Mortgages

Law360, New York (October 24, 2007, 12:00 AM EDT) -- An arm of Morgan Stanley has sued Fremont Investment & Loan for at least $10 million related to a deal over residential mortgages.

In a lawsuit filed Tuesday in the U.S. District Court for the Southern District of New York, Morgan Stanley Mortgage Capital Holdings LLC alleged that the unit of Fremont General Corp. violated agreements made when Morgan Stanley bought mortgages from Fremont between May 1, 2005 and Dec. 28, 2006.

Morgan Stanley claimed that hundreds of loans it acquired in the deal breached a...
To view the full article, register now.