Bank of America Corp. (BAC) is suing mortgage insurer First American Corp. for failing to cover 5,500 defective titles, which caused the bank to lose $535 million, according to reports.
The lawsuit takes aim at the title insurer in an effort to recover some of the billions in defaults on home-equity lines of credit the bank has written off over several quarters; it was filed on March 5 in a court in Charlotte, North Carolina, according to a report by Bloomberg News .
BofA has also sued mortgage insurer MGIC Investment Corp. (MTG) for its failure to cover millions in claims, the report said.
Bank of America shares rose 17 cents or 1.00% in Tuesday’s trading session, to close the day at $17.13 a share. The stock was up another 4 cents in after-hours trading.
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