Matter of Part 60 RMBS Put - Back Litig.
This case addresses contractual disputes arising from the pooling and securitization of residential mortgages (RMBS). Computershare Trust Company, National Association, acting as a Separate Securities Administrator, sued Natixis Real Estate Holdings LLC (and its predecessor) for breaching a Pooling and Servicing Agreement (PSA) by failing to identify and repurchase nonconforming mortgages. Natixis, in turn, filed counterclaims and a third-party complaint against Wells Fargo Bank, N.A. (the Securities Administrator and Master Servicer), alleging Wells Fargo breached its PSA duties to notify of breaches and supervise the Servicer. The Appellate Division ruled that Natixis's statute of limitations defense, based on the borrowing statute (CPLR 202), was not waived, overturning the lower court's decision on this point. It affirmed the dismissal of Natixis's contractual indemnification claim against Wells Fargo but allowed Natixis's independent breach of contract claims (failure to notify and failure to supervise) against Wells Fargo to proceed.