Wells Fargo, Ocwen Can’t Slip Novel ERISA Mortgage Row on Appeal

Wells Fargo Bank NA and Ocwen Financial Corp. must face a revived lawsuit seeking to hold them liable as ERISA fiduciaries for the mortgage-backed securities losses claimed by a pension fund.

Some of the challenged investments qualify as plan assets under the Employee Retirement Income Security Act, the US Court of Appeals for the Second Circuit held Thursday. The decision is a partial victory for trustees of the United Food & Commercial Workers Unions & Employers Midwest Pension Fund, who can now attempt to press ERISA claims over alleged losses tied to Ocwen-serviced mortgages that the plan invested in through ...