Gibbs & Bruns, a Houston law firm that negotiated an $8.5 billion settlement deal between Bank of America (BAC) and residential mortgage-backed securities investors, is now digging into trusts holding RMBS issued by Morgan Stanley (MS) affiliates.
The firm said it sent notices to three clients — U.S. Bank (USB), Wells Fargo — asking the parties as trustees to investigate ineligible mortgages in pools that secure $25 billion in Morgan Stanley RMBS. The three institutions possess about 25% of the voting rights in 69 trusts that oversee these particular RMBS deals.
"Our clients continue to seek a comprehensive solution to the problems of ineligible mortgages in RMBS pools and deficient servicing of those loans. Today’s action is another step toward achieving that goal," said Kathy Patrick, counsel for the holders.
Earlier this month, the law firm asked clients to review $19 billion RMBS issued by Wells Fargo.