Cases & Deals

Wells Fargo defends third party breach of contract lawsuit relating to RMBS trust

Clients Wells Fargo Bank, National Association

Jones Day is representing Wells Fargo Bank, N.A. in a third-party complaint filed by a bank, which is the mortgage loan seller of an RMBS trust.

The bank sued Wells Fargo in a third-party complaint alleging breach of contract and seeking indemnity from Wells Fargo in its capacity as Master Servicer and Securities Administrator. First party plaintiff Computershare Trust Company, as Separate Securities Administrator, instituted repurchase litigation against the bank, alleging pervasive breaches of representations and warranties made by loan originators and that the bank breached its subsequent obligation to repurchase those loans. In turn, the bank filed a third party complaint against Wells Fargo and alleges that Wells Fargo breached the contract by, and owes indemnity for, failing to provide the bank with prompt written notice of the alleged breaches and failing to cause the Servicer of the RMBS trust to provide that same notice.