Deutsche Bank Structured Products filed a lawsuit against New Century Mortgage Corp. yesterday, alleging that the subprime mortgage lender refuses to turn over servicing records and income on hundreds of originated loans that it sold to Deutsche Bank under the terms two repurchase agreements as well as other purchased loans.

Deutsche wants the servicing records on the repo-related loans so that it can, in turn, apply for government backing on them and receive proper compensation for the loans that it is carrying. The longer that New Century delays turning over those records, says Deutsche, the more likely that the loans will lose their value because of servicing and asset-management issues. Also, the loans could fall into delinquency and default. 

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