Prudential Says UBS Fraud Doomed $208M MBS Purchase

Law360, New York (May 9, 2013, 4:10 PM EDT) -- Prudential Insurance Co. of America is accusing UBS Americas Inc. of misrepresenting the quality of $208 million in mortgage-backed securities by shirking underwriting guidelines and failing to follow the proper appraisal process, according to a suit removed to New Jersey federal court on Wednesday.

Recent government investigations and Prudential's own analysis of the specific loans backing the certificates reveal "systemic failures" in UBS' loan underwriting and assignment practices, resulting in Prudential buying securities that were much more risky than UBS had represented them to be, the...
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