U.S. Bancorp Unit Sues BofA's Countrywide Over Loan Pool

The unit, U.S. Bank National Association, sued Countrywide yesterday in state court in New York, saying the lender agreed when it sold the pool in 2005 that it would repurchase all the loans within 90 days of receiving notice of a material breach. U.S. Bank is trustee for HarborView Mortgage Loan Trust 2005-10, which held the pool. The pool's original value was $1.75 billion, the bank said in court papers.

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A review of loan performance found that in a sample of 786 loans "an extraordinary 66 percent of the loans breached one or more mortgage representations," according to the U.S. Bank complaint.