DALLAS (CN) - The Bank of New York Mellon Corp. illegally declared a "rapid amortization event" on $2.9 billion in home mortgage trust certificates, covering 11,500 home mortgage loans and 3,328 home equity line of credit loans, and has stopped paying millions of dollars owed to Orix Properties Corp., Orix claims in Dallas County Court.
Orix says it owns Trust Certificates under the American Home Mortgage Investment Trust 2004-4. It claims the Bank of New York "unlawfully and improperly" declared a "Rapid Amortization Event" and already has withheld, and diverted, $2 million it owes Orix, with many millions to come.
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