U.S. Bancorp Unit Sues BofA’s Countrywide Over Loan Pool
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A U.S. Bancorp unit asked a New York court to force Bank of America Corp.’s Countrywide Financial unit to repurchase more than 4,000 loans in a mortgage pool to repair breaches of contract related to improper underwriting.
The unit, U.S. Bank National Association, sued Countrywide yesterday in state court in New York, saying the lender agreed when it sold the pool in 2005 that it would repurchase all the loans within 90 days of receiving notice of a material breach. U.S. Bank is trustee for HarborView Mortgage Loan Trust 2005-10, which held the pool. The pool’s original value was $1.75 billion, the bank said in court papers.