DEUTSCHE BANK NATIONAL TRUST COMPANY vs WMC MORTGAGE L.L.C., GE | Breach of Contract - $666 MILLION to 3,399 borrowers (the “Mortgage Loans”) - then grouped or “pooled” the loans and sold them to the Trust

Categorized | STOP FORECLOSURE FRAUD

DEUTSCHE BANK NATIONAL TRUST COMPANY vs WMC MORTGAGE L.L.C., GE | Breach of Contract – $666 MILLION to 3,399 borrowers (the “Mortgage Loans”) – then grouped or “pooled” the loans and sold them to the Trust

DEUTSCHE BANK NATIONAL TRUST COMPANY vs WMC MORTGAGE L.L.C., GE | Breach of Contract – $666 MILLION to 3,399 borrowers (the “Mortgage Loans”) – then grouped or “pooled” the loans and sold them to the Trust

UNITED STATES DISTRICT COURT
DISTRICT OF CONNECTICUT

DEUTSCHE BANK NATIONAL TRUST
COMPANY, solely as Trustee for the
MORGAN STANLEY ABS CAPITAL I INC.
TRUST, SERIES 2007-HE6,
Plaintiff,

v.

WMC MORTGAGE L.L.C., as successorby-
merger to WMC Mortgage Corp., and
GENERAL ELECTRIC CAPITAL
CORPORATION,
Defendants.

COMPLAINT

Plaintiff Deutsche Bank National Trust Company, solely in its capacity as Trustee (the
“Trustee”) of the Morgan Stanley ABS Capital I Inc. Trust, Series 2007-HE6 (the “Trust”),
brings this Complaint against WMC Mortgage L.L.C., as successor-by-merger to WMC
Mortgage Corp. (“WMC”), and General Electric Capital Corporation (“GE Capital” and together
with WMC, “Defendants”). The Trustee hereby alleges as follows:

NATURE OF THE ACTION

1. This is a breach of contract action concerning a transaction known as a mortgage
securitization. WMC, GE Capital’s wholly-owned subsidiary, “originated” or made loans
totaling more than $666 million to 3,399 borrowers (the “Mortgage Loans”), then grouped or
“pooled” the loans and sold them to the Trust. Investors in the Trust, known as
“Certificateholders,” were supposed to receive income as the borrowers repaid the Mortgage
Loans.

2. WMC, by the terms of the contract, assured the Trust and Certificateholders that
the borrowers were in a position to repay the Mortgage Loans. It did so in four crucial ways:
First, WMC made 67 separate representations and warranties that the borrowers were
creditworthy and that the Mortgage Loans were properly originated and represented accurately;
second, WMC promised to notify the Trustee when those representations and warranties were
breached; third, WMC promised to repurchase Mortgage Loans in material breach of its
representations and warranties to make the Trust whole; and, fourth, WMC promised to
indemnify the Trustee for breaches. This four-part remedial framework allocates to WMC the
risk that the Mortgage Loans may breach WMC’s representations and warranties.

3. It turns out that the bulk of the Mortgage Loans were bad because the borrowers
were not creditworthy or because WMC did not conform to underwriting standards. WMC has
breached its representations and warranties, has breached its duty to notify the Trustee of
breaches, has refused to repurchase the bad loans, and has breached its duty to indemnify the
Trustee. The Trust, and consequently Certificateholders, are entitled to damages in excess of
$500 million.

4. Accordingly, the Trustee, on behalf of the Trust, brings this action to enforce the
contract and receive the benefit of the bargain.

[…]

Down Load PDF of This Case

© 2010-17 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Comments

comments

This post was written by:

- who has written 8613 posts on FORECLOSURE FRAUD | by DinSFLA.

CONTROL FRAUD | ‘If you don’t look; you don’t find, Wherever you look; you will find’ -William Black

Contact the author

One Response to “DEUTSCHE BANK NATIONAL TRUST COMPANY vs WMC MORTGAGE L.L.C., GE | Breach of Contract – $666 MILLION to 3,399 borrowers (the “Mortgage Loans”) – then grouped or “pooled” the loans and sold them to the Trust”

  1. What irritates me about the claims here is not all the alleged defaults were non credit worthy people, millons were manufacuted by fraud false claims due to HAMP modification fraud. Predesigned fraud foreclosure and defaults. http://deadlyclear.wordpress.com/2013/01/18/hamp-the-modification-scam-and-now-settlement-sham/

Trackbacks/Pingbacks


Leave a Reply

GARY DUBIN LAW OFFICES FORECLOSURE DEFENSE HAWAII and CALIFORNIA
Advertise your business on StopForeclosureFraud.com
Kenneth Eric Trent, www.ForeclosureDestroyer.com

Archives