Merrill must face suit over $1B+ in mortgages

|By:, SA News Editor

At issue are 6K mortgages purchased by Merrill Lynch (BAC) in 2006 with an original principal balance of more than $1.1B. Merrill then turned the loans into MBS and sold them to investors.

Two trustees sued Merrill in late 2012, seeking to force the company to buy back the junky loans, and an appeals court today upheld a lower-court decision ruling Merrill must face the suit.