Another day in mortgage banking, another lawsuit: Bank of America Corp. has been sued by Royal Park Investments SA/NV over losses on approximately $1.6 billion in residential mortgage-backed securities (RMBS).
According to a Bloomberg News report, the Belgian-based Royal Park Investments is seeking damages of more than $713 million for RMBS losses. Royal Park says that it relied on Bank of America's ‘misrepresentations and omissions’ regarding the securities, adding that the bank made ‘false and misleading’ statements about statistical characteristics of the loans within the securities.
A Bank of America spokesperson declined to comment on the lawsuit.