HSBC, Decision One Hit With $165M Suit Over MBS Pool

Law360, Los Angeles (March 8, 2013, 8:22 PM EST) -- The Federal Housing Finance Agency hit HSBC Finance Corp. and Decision One Mortgage Co. LLC with a lawsuit in New York state court Friday alleging misrepresentations about a pool of mortgage-backed securities caused at least $164.8 million of damages.

The FHFA, as conservator for the Federal Home Loan Mortgage Corp., alleges Decision One made and breached contractual representations and warranties concerning the quality and characteristics of the mortgage loans in the pool, including that none of the mortgage loans were “high cost” or “predatory” loans....
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