Royal Park Investments Sues Bank of America Over $1.6 Billion in RMBS

more+
less-
more+
less-
Explore:  Bank of America RMBS

On October 26, Royal Park Investments filed a summons with notice in New York state court against various Bank of America and Countrywide entities arising out of Royal Park’s alleged purchase of $1.568 billion in RMBS. Royal Park asserts claims for common-law fraud, fraudulent inducement, negligent misrepresentation, and aiding and abetting fraud. It alleges that defendants made material misrepresentations and omissions regarding the underwriting standards used in connection with the underlying mortgage loans, the statistical characteristics of those loans, including loan-to-value and combined-loan-to-value ratios and the percentage of owner-occupied properties, the validity of the assignments of the loans to the trusts, and the entitlement of the trusts to receive interest and principal payments on the loans. Royal Park claims to have suffered, and seeks to recover, at least $713.5 million in damages. Summons.