BofA sued over $1.75 billion Countrywide mortgage pool

NEW YORK/CHARLOTTE, North Carolina (Reuters) – Bank of America Corp was sued by the trustee of a $1.75 billion mortgage pool, which seeks to force the bank to buy back the underlying loans because of alleged misrepresentations in how they were made.

The lawsuit by the banking unit of US Bancorp is the latest of a slew of litigation to recover investor losses tied to risky mortgage loans issued by Countrywide Financial Corp, which Bank of America bought in 2008.

In a complaint filed in a New York state court in Manhattan, U.S. Bank said Countrywide, which issued the 4,484 loans in the HarborView Mortgage Loan Trust 2005-10, materially breached its obligations by systemically misrepresenting the quality of its underwriting and loan documentation.

Soon after the loans were sold to the trust, they “began to become delinquent and default at a startling rate,” the complaint said. Out of a sample of 786 of the loans, 520, or 66 percent, breached one or more representations, it said.

U.S. Bank said it demanded that Bank of America fix the breaches or buy back the loans as it had agreed to do, but that it has refused and offered no reason for this refusal.

The lawsuit demands that the bank repurchase all the loans in the pool, or at least those it knows have problems and are hurting investors in the trust.

Rest here…

Complaint and exhibits below…

The exhibits are incredible. Especially Exhibit D on the fraud.

Be sure to check it all out.

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4closureFraud.org

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Complaint – US Bank NA v Country Wide BAC

EXHIBIT A US Bank NA v Country Wide BAC Harbor View 2005-10 Purchase and Servicing

EXHIBIT B US Bank NA v Country Wide BAC Harbor View 2005-10 Purchase Agreement

EXHIBIT C US Bank NA v Country Wide BAC Harbor View 2005-10 Pooling Agreement

Exhibit D US Bank NA v Country Wide Bac Harbor View 2005-10 Fraud