(CN) - Nationstar Mortgage claims in court that material breaches of a loan serving agreement by a onetime subsidiary of Lehman Brothers Bancorp have cost it at least $41 million.
In a complaint filed in New York County Supreme Court on Wednesday, the Lewisville, Texas mortgage lender says it purchased $63.7 billion worth of mortgage servicing rights from Aurora Loan Services in 2012, and that the sales agreement provided that Aurora would indemnify Nationstar for losses resulting from its servicing errors.
However, Nationstar says Aurora, whose once heavy investment in the mortgage market contributed to Lehman Brother's 2008 collapse, has failed to live up to its contractual obligations, and owes it $41 million in damages.
"Nationstar has suffered, and will continue to suffer, covered losses with respect to thousands of the underlying loans that resulted from Aurora's breaches of representations and warranties or from Aurora's violations of applicable servicing requirements," the complaint says.
Nationstar attributes these losses to errors in payment terms and interest rates provided to it by Aurora; errors due to Aurora's delivery of loans without a mortgage insurance policy; and the incorrect booking of loan modifications, among other factors.
Nationstar seeks damages for breach of contract, indemnification, and breach of the covenant of good faith.
It is represented by Matthew Previn with Buckley Sandler LLP in New York.
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