Sector developments and company hires

Servicing system suit
PennyMac Financial Services has filed a counter suit against Black Knight, alleging that Black Knight uses its market-dominating LoanSphere MSP mortgage servicing system to engage in unfair business tactics that both entrap its licensees and create barriers to entry that stifle competition. PennyMac is seeking to enjoin Black Knight’s wrongful practices and recover actual and statutory damages. The firm had been a customer of Black Knight’s mortgage software products since 2008, but due to the perceived limitations of the MSP product, PennyMac has invested - with Black Knight’s knowledge and as disclosed to its public stockholders - substantial resources to develop custom architecture in order to enhance its servicing capabilities. The move follows Black Knight Servicing Technologies filing suit, demanding that PennyMac transfer ownership of its own systems to Black Knight, having materially breached its contractual obligations and undertaken trade secret misappropriation. PennyMac says that Black Knight’s lawsuit is without merit and it intends to defend itself vigorously in these proceedings.

STS notifications
Bank of Scotland has submitted STS notifications in respect of its Permanent Master Issuer 2011-2, 2015-1, 2016-1 and 2018-1 RMBS notes to ESMA and the UK FCA. Prime Collateralised Securities UK was the authorised verification agent.