In a February 2007 mortgage securitization, defendant EMC Mortgage LLC (EMC) sold over 2,000 mortgages to the Bear Stearns Mortgage Funding Trust 2007-AR2 (Trust).  In an action commenced in the Delaware Court of Chancery (Chancery Court), the Trust is seeking to force EMC to repurchase more than half of those mortgages.  It alleges that EMC breached numerous representations and warranties relating to the underwriting of the mortgages in question and showed “callous disregard for prudent [loan] origination protocol.”  It also claims that, with respect to the few dozen mortgages that EMC has agreed to repurchase, EMC has miscalculated amounts it owes to the Trust.  This article summarizes the Trust’s allegations.  See also “For Hedge Funds, Ownership of Commercial Mortgage-Backed Securities Servicers Offers a Growing, Uncorrelated Stream of Fee Income and Advantageous Access to Distressed Mortgages, But Not Without Legal and Business Risk,” Hedge Fund Law Report, Vol. 2, No. 38 (Sep. 4, 2009).