Homeward Residential’s RMBS Claims Against Sand Canyon Dismissed in Part

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On February 14, Judge Analisa Torres of the United States District Court for the Southern District of New York granted in part defendant Sand Canyon Corporation’s motion to dismiss the amended complaint of plaintiff Homeward Residential related to Option One Mortgage Loan Trust 2006-3. The court dismissed plaintiff’s claim for alleged breach of representations and warranties to the extent based on the representation that there is no material default existing under the mortgage note for each loan. The court also dismissed the plaintiff’s claims for breach of the duty to repurchase and for indemnification.  Plaintiff’s claim for breach of contract related to appraisals and income, employment and debt verification will proceed. Order.

Topics:  Breach of Warranty, Misrepresentation, Mortgages, RMBS

Published In: Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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