Jordan

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT and GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR LEAVE TO FILE AN AMENDED COMPLAINT

On May 15, 2009, the Court heard oral argument on defendants’ motion for summary judgment and plaintiffs motion for leave to file a third amended complaint. Having considered the arguments of the parties, the papers submitted, the authority submitted after oral argument, and for good cause shown, defendants’ motion is GRANTED IN PART and DENIED IN PART and plaintiffs motion is GRANTED IN PART and DENIED IN PART.

BACKGROUND

The subject of this litigation is a dispute over so-called payment-option adjustable rate mortgages (“option ARM” loans). On August 30, 2007, plaintiff Gregory Jordan filed a putative class action complaint against defendant Paul Financial, LLC (“Paul Financial”). The complaint was amended twice in order to add named defendants Luminent Mortgage Capital, Inc.; Luminent Mortgage Trust 2006-2; and HSBC National Association (“HSBC”), such that the operative complaint is now the Second Amended Complaint (“SAC”), which was filed on May 14, 2008. On January 27, 2009, the Court denied…