JP Morgan Chase has to buy back mortgage backed securities

A lawsuit against a subsidiary which created a $666 million publicly offered bond backed by home equity lines of credit, now owned by JP Morgan Chase, by an insurer of mortgage backed securities can proceed.   The issue was that the Plaintiff only has evidence that a random sampling of mortgages included in the security were not conforming to the warranties of the bond creator.  Judge Crotty ruled that this statistical sampling was sufficient to allow the suit to continue.