Nov. 10 (Bloomberg) — A unit of Bank of America Corp., the largest U.S. lender, sued Old Republic Insurance Co., accusing the mortgage-insurance carrier of denying “hundreds of millions of dollars” in valid claims.
Bank of America NA’s suit, filed Nov. 3 in federal court in Charlotte, North Carolina, seeks more than $160 million in damages. The company said in its complaint that Old Republic is trying “to run from coverage” after loan defaults increased during the recession.
The bank, based in Charlotte, is the largest U.S. home-loan servicer and the second-biggest loan originator after San Francisco-based Wells Fargo & Co. Bank of America, which is handling about 1.3 million loans in which payments are at least 60 days late, acquired mortgage lender Countrywide Financial Corp. in 2008.
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