A U.S. District judge may have strengthened the hand of mortgage-backed securities investors who sue trustees overseeing their interests in pools of loans.
Reporter Alison Frankel with Thomson Reuters writes that U.S. District Judge William Pauley gave a Chicago police officers’ pension fund the OK to move forward with a case alleging that trustee Bank of New York Mellon violated its duty to MBS investors who acquired interests in pools of Countrywide-related mortgages.
The story quotes analysts as saying the ruling means investors can sue trustees even if they cannot get 25% of the voting rights in a trust to agree to the action. Click here to read Frankel’s column.
— Kerri Panchuk
