A New York State Supreme Court judge has reportedly ruled that a lawsuit brought against Bank of America by U.S. Bank, a unit of U.S. Bancorp, seeking the repurchase of home loans backing $1.75 billion of securities can proceed.
As per a report in Bloomberg News, Justice Eileen Bransten of the State Supreme Court in Manhattan on Thursday dismissed U.S. Bank's claim seeking repurchase of all the loans in the pool, but allowed it to proceed with a second claim seeking repurchase of 495 of the loans.
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 did not live up to their promised quality and should be repurchased, the report states.
The case stems from Bank of America's acquisition of Countrywide Mortgage following the housing market meltdown in 2008.