Bloomberg News

Morgan Stanley Mortgage Sued for $110 Million Over Loans

October 01, 2012

Morgan Stanley (MS:US) Mortgage Capital Holdings LLC was sued for at least $110.8 million by a trustee for investors in mortgage-backed securities.

The Morgan Stanley unit made “numerous and repeated failures” to comply with promises about the loans underlying the securities, trustee U.S. Bancorp said in a Sept. 28 filing in New York State Supreme Court.

The original principal balance of loans sold as securities was $609 million, and the amount of defective loans is more than $129 million, according to the filing. U.S. Bancorp said it is seeking at least $110.8 million in damages.

Lauren Onis, a spokeswoman for New York-based Morgan Stanley, didn’t immediately respond to an e-mail seeking comment on the suit.

The case is Morgan Stanley Mortgage Loan Trust 2006-13ARX v. Morgan Stanley Mortgage Capital Holdings LLC, 653429-2012, New York State Supreme Court, New York County (Manhattan).

To contact the reporter on this story: Chris Dolmetsch in New York at cdolmetsch@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


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Companies Mentioned

  • MS
    (Morgan Stanley)
    • $33.35 USD
    • 0.44
    • 1.32%
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