GE Can't Dodge BNY Mellon Suit Over $900M MBS Trust

Law360, Los Angeles (January 15, 2014, 3:04 PM EST) -- Bank of New York Mellon can sue General Electric Mortgage Holding LLC to repurchase loans that originated with a GE subsidiary, a New York federal judge ruled Tuesday, saying both entities are responsible for the quality of loans in the $900 million mortgage-backed security.

The bank contends that GE, which transferred the loans from its subsidiary WMC Mortgage LLC to the company that deposited them with the bank, can be forced to repurchase or repair loans that don’t live up to the representations the bank relied...
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