Ex-GE, Barclays Units Sued Over Allegedly Defective Loans

Law360, New York (August 31, 2012, 8:14 PM EDT) -- A U.S. Bancorp unit serving as trustee for a $550 million mortgage pool says it has discovered hundreds more defective loans than previously identified and sued General Electric Co.'s and Barclays PLC's loan originators Friday in Minnesota over their alleged refusal to buy back the low-quality assets.

The complaint closely mirrors a lawsuit U.S. Bank National Association brought last fall against GE’s and Barclays’ loan origination divisions, known respectively as WMC Mortgage LLC and EquiFirst Corp. The origination units, now defunct, stand accused of selling subprime...
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