PNC Hits Insurer With Suit Over Subprime Loan Claims

Law360, Philadelphia (October 11, 2012, 3:43 PM EDT) -- PNC Bank NA sued Republic Mortgage Insurance Co. in Pennsylvania federal court on Wednesday, alleging that RMIC breached the parties' insurance contract by denying claims arising from nonperforming real estate loans originated by a predecessor bank.

PNC contends that RMIC, hobbled by the recent mortgage crisis, has begun denying claims the loans made by National City Corp. — which was acquired by PNC in 2008 — by actively misinterpreting the language governing the insurance contracts.

"RMIC's claim denials are based in large part on bad faith...
To view the full article, register now.