- The New York Court of Appeals overturned a lower court’s dismissal of suit against New York City, the New York Mets’ ownership group and The Related Cos., which had plans to build the Mets’ stadium on public parkland. The Court ruled that the city had incorrectly found that the rules allowed such a development. This ruling effectively bars the $3 billion project from moving forward.
- CitiMortgage settles to pay $2.2 million in case brought by military members. It was accused of violating the Servicemembers Civil Relief Act, which caps interest payments on military members’ mortgages.
- A Florida federal judge ruled that the $1.3 billion suit against Deloitte for its involvement in the end of Taylor Bean & Whitaker Mortgage Corp. will not be dismissed because Freddie Mac presented evidence that Deloitte “put amateurs on the job, overlooked inconsistencies in audits and accepted the explanations of Taylor Bean executives even when they didn’t make sense.”
- A NY federal judge dismissed Bank of New York Mellon’s indemnification and loan-repurchase claims against General Electric Mortgage Holding LLC, leaving only a breach of contract claim. The court found that the indemnification claims were duplicative of the breach of contract claims and the failure to repurchase claims were precluded by a recent NY Court of Appeals decision in Ace Securities v. DB Structured. The suit involves a $900 million mortgage-backed security that performed poorly.
Tag Archives: Taylor Bean & Whitaker Mortgage Corp.
Monday’s Adjudication Roundup
- HSBC facing suit for breaching its duties as trustee for 271 residential mortgage-backed securities trusts.
- The US Supreme Court considered whether debtors should have an absolute right to appeal denial of proposed bankruptcy plan after three circuit courts have found that debtors can automatically can appeal, while in other jurisdictions, the bankruptcy judge must permit the appeal.
- BNP Paribas Mortgage Corp. suit from 2009 regarding Bank of America’s mishandling of hundreds of millions of dollars of mortgage-backed notes issued by Taylor Bean & Whitaker Mortgage Corp. finally settles.
