BofA sued over $1.75 billion mortgage trust
NEW YORK (Reuters) - Bank of America Corp was sued by the trustee of a $1.75 billion mortgage pool, which seeks to force the largest bank to buy back all of the loans in the trust because of alleged misrepresentations.
The banking unit of US Bancorp said Countrywide Financial Corp, which issued the loans in the HarborView Mortgage Loan Trust 2005-10, breached its obligations by misrepresenting the quality of its underwriting and loan documentation.
It said that because of this material breach, Bank of America, which bought Countrywide in 2008, was obligated to buy back all the loans in the mortgage pool.
The lawsuit was filed in the New York State Supreme Court in Manhattan. Bank of America was not immediately available for comment.
(Reporting by Jonathan Stempel and Joe Rauch; Editing by Derek Caney)