WMC Mortgage was sued by the securities administrator for a mortgage trust, which accused the subprime loan originator of breach of contract that caused more than $550 million in damages.

The trust was formed as part of a $1.9 billion residential mortgage securitization sponsored by JPMorgan Mortgage Acquisition Corp. and serviced by JPMorgan Chase (JPM), according to the suit, filed yesterday in New York State Supreme Court in Manhattan.

cmlynski@housingwire.com