BofA Must Face Mortgage Repurchase Suit by U.S. Bancorp

Bank of America Corp. must face a lawsuit filed by a mortgage-bond trustee that seeks the repurchase of home loans backing $1.75 billion of securities, a judge ruled.

Justice Eileen Bransten of New York State Supreme Court in Manhattan said the lawsuit filed by a U.S. Bancorp unit could proceed, while dismissing part of the case, according to a decision dated yesterday.

U.S. Bank, the trustee for HarborView Mortgage Loan Trust 2005-10, sued Bank of America and its Countrywide Financial unit in 2011, claiming loans underlying the securities didn’t live up to their promised quality and should be repurchased.

Bransten dismissed a claim seeking repurchase of all the loans in the pool, while allowing U.S. Bank to make a new argument for proceeding on the claim. A second claim seeking repurchase of 495 loans can move forward, according to the decision.

Lawrence Grayson, a spokesman for Charlotte, North Carolina-based Bank of America, declined to comment about the decision.

The case is U.S. Bank v. Countrywide Home Loans Inc., 652388-2011, New York State Supreme Court (Manhattan).

To contact the reporter on this story: David McLaughlin in New York at

To contact the editor responsible for this story: John Pickering at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.