Sep, 19
2012

Today, the holders of significant Voting Rights in more than $28 billion of Morgan Stanley-issued RMBS and $45 billion of Wells Fargo-issued RMBS sent a Notice of Non-Performance (Notice) to Morgan Stanley and Wells Fargo, as Servicer or Master Servicer, identifying specific covenants in Pooling and Servicing Agreements (PSAs) that the Holders allege Morgan Stanley and Wells Fargo have failed to perform.  The Notice covers more than $5 billion of Morgan Stanley-issued RMBS and $15 billion of Wells Fargo-issued RMBS in which the Holders have 25% or 50% or more of the Voting Rights, as applicable.  The Notice also covers $23 billion of Morgan Stanley-issued RMBS and $30 billion of Wells Fargo-issued RMBS in which the holders have significant Voting Rights, but less than 25% or 50%, as applicable.

The Holders’ Notice alleges that each of these failures has materially affected the rights of the Certificateholders and constitutes an ongoing Event of Default in the Servicer’s performance under the relevant PSAs.

The Notice of Non-Performance was issued on behalf of Holders in the following Morgan Stanley and Wells-Fargo-issued RMBS:

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Gibbs & Bruns LLP
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