Morgan Stanley Didn't Buy Back Bad Loans, FHFA Suit Says

Law360, New York (January 28, 2013, 6:01 PM EST) -- The Federal Housing Finance Agency sued a Morgan Stanley unit in New York state court on Friday, alleging it failed to repurchase faulty residential mortgage loans pooled into securities sold to troubled mortgage giant Freddie Mac in 2007, breaching an agreement governing the securities.

A summons filed by the FHFA on behalf of the trustee of the securities issued by the Morgan Stanley ABS Capital I Inc. Trust, Series 2007-NC1 claims that Morgan Stanley ABS Capital I Inc. knew that mortgage loans it sold were in...
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