Bank of America Strikes Back With Own Lawsuit

By Kyle Chezum Updated on 11/11/2010

11/11/2010

Bank of America filed a lawsuit this past week against mortgage insurance company Old Republic over findings that the insurance company has denied claims.  Bank of America had insured nearly $2.2 billion with Old Republic and began submitting claims in late 2007 as the housing crisis began to ramp up and defaults became more common.

Old Republic has refused to pay claims submitted over mortgages in which borrowers misrepresented themselves.  In the wake of the foreclosure crisis, this means Old Republic is denying a large number of claims.  Bank of America insists that any paperwork errors and omissions present on their books have nothing to do with the validity of the claims.

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