US Bank Hits Morgan Stanley With $69M Mortgage Loan Suit

Law360, Washington (July 30, 2012, 3:37 PM EDT) -- U.S. Bank NA sued Morgan Stanley Mortgage Capital Holdings LLC in New York state court on Friday in an effort to force the loan aggregator to repurchase 4,600 misrepresented loans or pay $69 million in damages.

U.S. Bank brought on the suit as the trustee of a securitization trust that purchased $300 million of unpaid loans from Morgan Stanley, believing the loans were in good standing. But shortly after the purchase, many of the mortgage loans began to go into default or become delinquent, setting the...
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