servicing of mortgage loans (as opposed to the sale and repurchase of mortgageloans) also protected under the safe harbor provisions? The Court finds that theservicing of mortgage loans is
protected under the safe harbor provisionsbecause: (i) under applicable law, the portion of the contract providing for theservicing of the mortgage loans is severable from the portion of the contractproviding for the sale and repurchase of mortgage loans; and (ii) the portion ofthe contract providing for servicing mortgage loans is neither a “repurchaseagreement” nor a “securities contract” under the Bankruptcy Code.The third and final issue is whether the Court should require the Debtorsto transfer the rights and obligations relating to servicing the mortgage loans tothe plaintiff. As the Court finds that the portion of the contract providing for theservicing of the mortgage loans is not subject to the safe harbor provisions, thereis simply no basis to require the Debtors to transfer property of the estate (i.e.,the right to service of the mortgage loans under the contract) to the plaintiff.
This Court has subject matter jurisdiction under 28 U.S.C. § 1334(b).Venue is proper in this district under 28 U.S.C. §§ 1408 and 1409(a). This is a coreproceeding under 28 U.S.C. §157(b)(2)(A), (B), (C), (E), (G), (K) and (O).
On August 6, 2007, American Home Mortgage Corp. and certain of itsaffiliates filed bankruptcy under Chapter 11. Shortly thereafter, Calyon NewYork Branch, as Administrative Agent, (“Calyon” or “Plaintiff”) filed a complaintagainst American Home Mortgage Corp.,
American Home MortgageAcceptance, Inc. (“AHM Acceptance”), American Home Mortgage Servicing, Inc.(“AHM Servicing”), and American Home Mortgage Investment Corp. (“AHMInvestment”) (collectively, the “Debtors” or “Defendants”).
In the complaint,
Not all of the Chapter 11 debtors are defendants in this adversary proceeding. Unless otherwiseindicated, the term “Debtors” in this Opinion refers only to those Chapter 11 debtors that areparties to this adversary proceeding.