Pennsylvania Lawsuit Says Securitization Process Waives Bankster Foreclosure Rights; Homeowner Seeks Damages Recovery, Invalidation Of Mortgage Loan

In Pittsburgh, Pennsylvania, the Pittsburgh Post Gazette reports:

• The millions of mortgages that were bundled into giant investment pools and traded like stocks shouldn't be subject to foreclosure, according to an unusual lawsuit filed Wednesday.



• That's because when banks chose to turn mortgages into investment products, they gave up the right to take the house, attorney Luke Lucas argues.



• His lawsuit in U.S. District Court focuses on one Plum man's mortgage. But if its theory were accepted by courts, it would have huge implications for the entire mortgage market.

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• The lawsuit alleges violations of multiple federal laws. It seeks cancellation of Mr. Schott's debt, repayment of interest paid times three and damages including punitive damages. The lawsuit names Bank of America, several of its subsidiaries and the Bank of New York Mellon as defendants. BNY Mellon became the trustee for the REMIC, it said.

For more, see Plum man files suit over home foreclosure.