Morgan Stanley Can't Dodge Loan Modification Denial Suit

Law360, New York (November 17, 2011, 5:23 PM EST) -- A California federal judge on Thursday refused to dismiss a proposed class action accusing a Morgan Stanley unit of denying new terms to homeowners in a loan modification program, finding that the plaintiffs addressed problems in the complaint that caused the suit to be tossed in August.

The named plaintiff, Marie Gaudin, claimed Saxon Mortgage Services Inc. delayed processing her loan while urging her to make trial payments as part of its Home Affordable Modification Plan, meant for homeowners who were behind on loan payments. Eventually,...
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