Royal Park Targets BofA Over $1.6B In MBS

Law360, New York (November 5, 2012, 6:15 PM EST) -- Belgium-based Royal Park Investments SA/NV has sued Bank of America Corp. over problems with $1.6 billion in mortgage-backed securities it holds, claiming the bank misled investors about the quality of loans bundled into the financial products.

Bank of America and its subsidiaries lied about statistics regarding mortgages it bundled, including their loan-to-value ratios and the percentage of owner-occupied properties, two figures that are key to determining the likelihood of mortgage default, says Royal Park's summons, filed Oct. 26 in New York state court in Manhattan. The...
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