Trustee Sues Deutsche Bank Unit Over $640M In MBS

Law360, New York (November 28, 2012, 4:10 PM EST) -- The trustee for holders of nearly $640 million in residential mortgage-backed securities sued a Deutsche Bank AG affiliate in New York federal court Tuesday for breach of contract, claiming the bank failed to properly review the mortgage loans comprising the securities.

The complaint was filed by HSBC Bank USA, acting as the trustee for the mortgage-backed securities trust, against DB Structured Products Inc. The plaintiffs claimed that a review of a sample of the home loans in the MBS pool showed that more than 90 percent...
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