Reinsurer May Not Intervene in Dispute Over Trust Proceeds, N.Y. Federal Judge Rules

NEW YORK — A New York federal judge has refused to allow a reinsurer to intervene in a lawsuit involving the distribution of proceeds from a mortgage-backed securitization trust, finding the reinsurer’s interests are already adequately represented by its cedent.

On Sept. 18, Judge Paul G. Gardephe of the U.S. District Court for the Southern District of New York found the reinsurer and its cedent both have an interest in maximizing the cedent’s recovery in this action.

On Sept. 25, 2013, Wells Fargo Bank filed an interpleader complaint in this action as trust administrator of the MASTR Adjustable Rate Mortgages …