No Claim For Negligence Against Mortgage Servicer
April 25, 2016
By: David Rabinowitz
The federal District Court for the District of New Jersey recently confirmed the rule that mortgage servicers for residential mortgage backed securities trusts have no liability for alleged negligence to trust certificate holders for alleged negligence relating to their duties under the pooling and service agreement. The Court agreed with the servicer, Wells Fargo, that its duties were “solely defined” by the pooling and service agreement.