Hello once again.
We know that a lot of sketchy loans went into legacy CMBS. Often, the special servicer delights in pointing out how actual performance differs from predicted performance (even though they bought the at-risk B pieces). The sole recourse left to the trust is to sue the originator for a breach claim. This has happened before but seldom. Orix took Nomura to the cleaners for Doctor's Hospital at Hyde Park (ASC 1997-D5) to the tune of $65MM including legal costs but it took over five years to resolve. I am aware of only one repurchase claim in the current market, City View Center in MSC 2007-IQ14. The story here is that a shopping center was built on top of two landfills in a suburb of Cleveland, with a methane remediation system to vent gas through lighting posts in the parking lot. Wal-mart moved in, decided it stank of fart gas, and moved out, triggering co-tenancy clauses. MSC is being sued for a breach claim for not having adequately disclosed environmentals. The loan has been declared non-recoverable and shortfalls are hitting the AJ class. Any others you know about?