Article 77 Decision Enforces Write-Up Provisions Notwithstanding Past Practice and Arguments About Waterfall Logic
ABS Update

Article 77 Decision Enforces Write-Up Provisions Notwithstanding Past Practice and Arguments About Waterfall Logic

On May 19, 2025, Justice Masley of the New York County Commercial Division issued a decision in Matter of Bank of N.Y. Mellon, 2025 NY Slip Op 31952(U), enforcing an indenture’s write-up provisions notwithstanding past practice and arguments about waterfall logic . . . Continue reading Article 77 Decision Enforces Write-Up Provisions Notwithstanding Past Practice and Arguments About Waterfall Logic

Court RMBS Loan Servicer’s Claim for Lost Profit Damages Arising from Seller’s Failure to Give Notice of Document Defects
ABS Update / Put-Back Actions

Court RMBS Loan Servicer’s Claim for Lost Profit Damages Arising from Seller’s Failure to Give Notice of Document Defects

On September 27, 2023, Justice Crane of the New York County Commercial Division issued a decision in HSBC Bank USA, N.A. v. Nomura Credit & Capital, Inc., 2023 NY Slip Op. 33361(U), dismissing an RMBS loan servicer’s claim for lost profits damages arising from the seller’s failure to give notice of document defects . . . Continue reading Court RMBS Loan Servicer’s Claim for Lost Profit Damages Arising from Seller’s Failure to Give Notice of Document Defects

Where Servicer and Originator Were the Same, Originator’s Failure to Cure Defective Loans Constituted Servicer Failure to Perform Event of Default
ABS Update / Claims Against Trustees

Where Servicer and Originator Were the Same, Originator’s Failure to Cure Defective Loans Constituted Servicer Failure to Perform Event of Default

On September 21, 2023, Judge Engelmayer of the S.D.N.Y, issued a decision in Ambac Assurance Corporation v. U.S. Bank, 17 Civ. 2614 (PAE) (KHP), holding that where the servicer and originator were the same, the originator’s failure to cure defective loans was a servicer failure to perform event of default. Continue reading Where Servicer and Originator Were the Same, Originator’s Failure to Cure Defective Loans Constituted Servicer Failure to Perform Event of Default

Court Dismisses Claim Against Servicer for Failing to Give Notice of Representation and Warranty Breaches Because Originator Would Have Ignored Any Demand Made on It
ABS Update / Put-Back Actions

Court Dismisses Claim Against Servicer for Failing to Give Notice of Representation and Warranty Breaches Because Originator Would Have Ignored Any Demand Made on It

On September 19, 2023, Justice Crane of the New York County Commercial Division issued a decision in HSBC Bank USA, N.A. v. Nomura Credit & Capital, Inc., 2023 NY Slip Op. 33252(U), dismissing a claim against Ocwen for failing to give Nomura notice of representation and warranty breaches because Normura would have refused to cure any breaches of which it was given notice . . . Continue reading Court Dismisses Claim Against Servicer for Failing to Give Notice of Representation and Warranty Breaches Because Originator Would Have Ignored Any Demand Made on It