A lawsuit filed yesterday against Nationstar Mortgage LLC aims to stop the servicer from future auctions of mortgage notes of delinquent loans backing residential mortgage securities via the website www.auction.com.

The lawsuit filed by mortgage-bond investor KIRP LLC in the New York State Supreme Court in Manhattan, alleges that a note sale is not an option available to the servicer, and second, that the sale is harmful to the interests of the investors in the RMBS trust relative to other alternatives, according to a Barclays report published today.

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