RMBS securitizations

Morgan Stanley and Natixis Win Dismissal of RMBS Claims

On July 14, 2015, Justice Friedman of the New York State Supreme Court for the County of New York granted in part Morgan Stanley & Co.’s motion to dismiss fraud claims brought by HSH Nordbank AG (“HSH”) and Carrera Capital Finance Limited (together, “Plaintiffs”) in connection with 21 RMBS securitizations, and granted in full a separate motion to dismiss filed by Natixis Real Estate Capital LLC (“Natixis”) against the same Plaintiffs.

Justice Friedman ruled that all claims against Natixis were barred by the statute of limitations for fraud in New York, finding that Plaintiffs could have discovered the alleged fraud at least two years prior to filing.  Justice Friedman also dismissed certain of HSH’s fraud claims because it did not sufficiently allege that the certificates’ original purchaser had intended to assign the claims to HSH.  The court will permit claims arising from certificates purchased directly by Plaintiffs to proceed.  Order.

JPMorgan Agrees to $4.5 Billion Settlement in RMBS Suit

On November 15, JPMorgan Chase & Co. agreed to pay 21 institutional investors $4.5 billion to settle all representation and warranty claims, as well as servicing claims, in respect of all RMBS securitizations issued by JPMorgan and Bear Stearns between 2005 and 2008.  In addition, JPMorgan agreed to implement servicing changes to mortgage loans in the trusts.  The settlement does not resolve claims against Washington Mutual Inc.  Press Release.