U.S. Bank Sues Bank of America Over $1.75 Billion Countrywide RMBS Deal

On August 29, 2011, U.S. Bank National Association (“U.S. Bank”) filed a lawsuit against Bank of America and certain affiliates, as successor to Countrywide Financial Corp., in the Supreme Court for the State of New York. U.S. Bank, as Trustee of the RMBS transaction, filed this suit at the direction of trust investors, in order to force Bank of America to repurchase each of the securitized loans underlying the trust. The complaint alleges that Countrywide failed to adhere to its own underwriting guidelines and thus misrepresented the quality of the loans underlying the trust. The complaint further alleges that it notified Bank of America of the need to cure or repurchase the loans beginning on May 2, 2011. U.S. Bank alleges that to date Bank of America has neither repurchased any loans nor provided an explanation for the failure to do so. U.S. Bank brings claims for breach of contract and a declaratory judgment that Bank of America is required to repurchase all of the allegedly defective loans in the mortgage pool. Complaint.