Lehman Sues Mortgage Co. Over Sales Of Home Loans

Law360, New York (January 23, 2012, 12:57 PM EST) -- Bankrupt Lehman Brothers Holdings Inc. filed suit Friday in Texas federal court alleging mortgage servicer Republic State Mortgage Co. misrepresented mortgage loans it sold Lehman and then refused to repurchase them, violating agreements between the companies.

Lehman Brothers claims that five separate mortgage loans that Lehman Bros. Bank FSB purchased from Houston-based Republic State and assigned to Lehman Bros. Holdings contained misrepresentations about the borrowers and the property that secured the loans, according to the plaintiff.

Three of the loans were secured with applications that misrepresented...
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