Mortgage Lenders Sues Merrill Over Transfers

Law360, New York (April 2, 2008, 12:00 AM EDT) -- Mortgage Lenders Network USA Inc. filed suit Monday against Merrill Lynch & Co., seeking to recover nearly $5 million that it says Merrill Lynch unilaterally transferred to itself shortly before the mortgage lender filed for bankruptcy.

Before Mortgage Lenders entered Chapter 11, it had several agreements with Merrill Lynch under which the brokerage helped finance loans issued by Mortgage Lenders.

In the 90 days before Mortgage Lenders filed its bankruptcy petition, Merrill Lynch sold loans that were rightfully the property of Mortgage Lenders and made incomplete...
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