Ex-Morgan Stanley Unit Can't Duck Mortgage Modification Suit

Law360, Philadelphia (May 13, 2013, 6:39 PM ET) -- A Pennsylvania federal judge on Thursday refused to dismiss a putative class action alleging a former Morgan Stanley subsidiary refused to permanently execute mortgage modification plans, ruling there were sufficient pleadings that the company failed to follow the guidelines of a federal mortgage relief program.

Judge John Padova in Philadelphia rejected Saxon Mortgage Services Inc.'s argument that that temporary payment plans, or TPPs, that it executed with homeowners across Pennsylvania under the federal Home Affordable Modification Plan didn't obligate it to make the mortgage modifications permanent....
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