HSBC Bank USA, National Association, acting as trustee, filed the suit in state Supreme Court in Manhattan yesterday, accusing Nomura Credit & Capital Inc. of failing to comply with obligations associated with 5,292 residential mortgages it purchased and sold to the trust.
The trust said in a filing that it has suffered more than $486 million in losses on the securities and will continue to suffer damages because Nomura hasn’t complied with obligations to furnish missing documentation and files for defective loans.
At least 1,448 of the loans don’t conform with information provided by Nomura about their characteristics, such as underwriting standards used at origination and information provided to ratings agencies, the trust said in the filing.
Jonathan Hodgkinson, a spokesman for Nomura in New York, said in an e-mail that the firm doesn’t comment on active legal proceedings.
The case is Nomura Home Equity Loan Inc., Home Equity Loan trust, Series 2007-3, v Nomura Credit & Capital Inc., 651124/2013, New York State Supreme Court (Manhattan).
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