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Home » Store » Securitization » Trustee Sues to Force Citigroup to Honor Repurchase Agreement; Citigroup Freed from Shareholder Suit

Trustee Sues to Force Citigroup to Honor Repurchase Agreement; Citigroup Freed from Shareholder Suit

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Securitization

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U.S. Bank, as trustee for a mortgage loan trust, has sued Citigroup in New York state court to force the financial giant to cure or repurchase defective loans from a securitized pool. In a separate case, a federal court in New York dismissed a shareholder action against Citigroup in connection with certain residential MBS. At issue in the first case is a pool of 4,792 mortgage loans that Citigroup Global Markets Realty Corp. purchased and securitized in May 2007. Citigroup sold the loans to Citigroup Mortgage Loan Trust, which, in turn, deposited the loans into the trust and assigned its rights to U.S. Bank. The trust then issued the MBS. According to the court summons and notice, Citigroup conducted...
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