Mortgage Originator WMC Sued Over $1B In Shoddy Loans

Law360, New York (October 29, 2012, 2:06 PM EDT) -- The trustee for the depositor of a securitized pool of $1 billion in mortgage loans sued the loans' originator WMC Mortgage LLC in federal court Friday, alleging WMC failed to notify the trust that the majority of the loans were defective and refused to repurchase them.

WMC is the so-called responsible party to a pooling and servicing agreement with depositor Securitized Asset Backed Receivables LLC Trust 2006-WM2, obliging it to ensure that the underlying loans did not include fraudulent misrepresentations or defaults and to repurchase any...
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