On September 21, 2015, Judge Denise L. Cote of the United States District Court for the Southern District of New York endorsed Bank of New York Mellon's ("BNYM") September 18, 2015 letter reporting that the parties had settled a case in which BNYM sought repurchase of a number of allegedly defective loans as trustee for the GE-WMC Mortgage Securities Trust 2006-1. The terms of the settlement were not disclosed. Endorsed Letter.
In a ruling last month, Judge Cote had significantly reduced the potential damages in the case by holding that the trustee's potential damages were limited to the repurchase price defined in the relevant agreements, which included the stated principal balance of "zero" for all liquidated loans.
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