'Insurer Is Stiffing Us On Our 'Soured Loans' Claims Alleging Lack Of Proper Paperwork & Lying Borrowers,' Bellyaches BofA In Lawsuit

In Charlotte, North Carolina, The Charlotte Observer reports:

• Bank of America Corp. is suing its mortgage insurance company for denying its claims. It's the latest twist in finger-pointing over the mortgage crisis. The bank says that Old Republic Insurance Co., which Bank of America paid to insure it against losses on potential borrower defaults, is "manufacturing excuses" to deny the bank's claims.

• In a lawsuit filed last week in district court in Charlotte, it calls Old Republic's conduct "aggravating and outrageous," and says Old Republic is making "unreasonable interpretations" of the requirements in its policies.

• Old Republic says it is denying claims where borrowers misrepresented themselves or where the bank is missing paperwork, according to the lawsuit. The bank says that borrowers didn't misrepresent themselves, that Old Republic had ample access to Bank of America's loan books, and that any missing paperwork has "nothing to do" with the claims.

For more, see Bank of America sues its insurance provider over foreclosure claims.