Investor Files Suit Against Nationstar Over Mortgage Auctions

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On March 7, KIRP, LLC sued Texas-based mortgage servicer Nationstar Mortgage LLC in the Supreme Court of the State of New York in connection with Nationstar’s alleged improper conduct in servicing mortgage loans that are collateral for RMBS certificates owned by KIRP. Specifically, KIRP alleges that Nationstar auctioned off defaulted mortgages loans at prices far below the loans’ value in breach of Nationstar’s obligations under its master servicing contract. KIRP further alleges that Nationstar conducted these auctions to recoup advances Nationstar made to troubled borrowers, in breach of its duties to place the interests of certificate holders above its own interests. KIRP purports to sue on behalf of all certificate holders in the six RMBS trusts at issue. KIRP asserts claims for breach of contract, conversion, unjust enrichment and declaratory judgment, and seeks a temporary restraining order, disgorgement of profits, damages, interest and reimbursement of costs and expenses. Complaint.

Topics:  Auction, Breach of Contract, Collateral, Mortgage Loan Servicing Standards, Mortgages

Published In: Business Torts Updates, Civil Remedies Updates, General Business Updates, Finance & Banking Updates, Residential Real Estate 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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