In a good news ruling for Investors in mortgage real estate trusts, the Ninth Circuit Court of Appeals has published a decision which allows securitized trusts to stay in federal court based on diversity jurisdiction. The Court rejected an argument that would have jeopardized the ability of investment trusts to ever remove a lawsuit to federal court on diversity jurisdiction grounds.
See Demarest v. HSBC Bank USA, N.A. as Tr. for registered holders of Nomura Home Equity Loan, Inc., Asset-Backed Certificates, Series 2006-HE2, No. 17-56432, 2019 WL 1510430 (9th Cir. Apr. 8, 2019). Federal Courts are preferred for those with mortgage investment interests for a number of reasons, such as locale, court processes, efficiency, and quality.