(CN) – A federal judge in D.C. dismissed homeowners’ claims against their mortgage underwriters based on alleged violations in the securitization of their mortgage loans.
Four D.C. area homeowners sued Suntrust Bank, Bank of America, and other mortgage lenders who underwrote their respective home loans between 1989 and 2007.
“The crux of their collective allegations is that defendants, through their procedures in repackaging and securitizing plaintiffs’ mortgage loans, violated certain terms and warranties contained in their agreements with plaintiffs and made material false representations to plaintiffs,” U.S. District Judge Rosemary Collyer said.
However, “In neither the original complaint nor the amended complaint do plaintiffs identify with particularity which terms were allegedly broken by each Defendant or what specific statements were allegedly made.”
Because the homeowners failed to provide the count with fundamental facts regarding their claims, namely the exact contract terms the banks breached or specific misrepresentations made to the homeowners, Collyer denied their motion to amend the complaint for failure to state a claim.