Morgan Stanley and WMC Mortgage Corp. were sued by Seagull Point LLC over $476 million in losses from securitized mortgage loans.
Seagull claimed that the banks breached agreements on residential mortgage loans in 2006 and 2007, according to a filing dated April 26 in New York State Supreme Court in Manhattan.
Morgan Stanley, based in New York, securitized more than 5,800 residential mortgage loans in 2007 that were ultimately sold to Seagull, according to the complaint. Some of the loans were delinquent at the time of the offering, Seagull said.
“Defendants are required to comply with their contractual obligations to repurchase the mortgage loans already identified as breaching representations and warranties,” Seagull said in the complaint.
The case is Seagull Point LLC v. WMC Mortgage Corp., 651519/2013, State Supreme Court of New York, County of New York (Manhattan).