MANHATTAN (CN) - A mortgage insurer claims that Countrywide Financial Corp., whose "notorious lending practices have been ... the subject of numerous state and federal investigations," is trying to derail an investigation of its "rescinded and canceled loans." Republic Mortgage Insurance Co. says it has found more than 1,500 Countrywide loans containing "material misrepresentations."
In its complaint in New York County Court, Republic claims that Countrywide is disputing attempts by two of its mortgage insurers to review mortgage insurance policies.
"In its investigation of delinquent loans produced through Countrywide's shoddy lending practices," Republic says, it "has determined that ... there have been over 1500 loans [containing] material misrepresentations.
"As a result, RMIC has exercised its rights under the mortgage insurance policies to rescind coverage for those loans."
But the insurer says Countrywide is trying to block Republic's investigation, by disputing its claims review and coverage determinations.
Republic seeks a declaration that "the procedures it uses to investigate the material facts relating to the delinquent loans and claims submitted by Countrywide, including but not limited to the use of IRS filings, bankruptcy court filings, other publicly available information, and review appraisals, are consistent with the terms of the applicable mortgage insurance policies and applicable law, and are not a basis for Countrywide to challenge the rescissions or cancellations RMIC has made with respect to certificates issued under the applicable mortgage insurance policies."
Republic also sued Bank of America, Countrywide's corporate successor.
Republic is represented by Peter Chaffetz with Chaffetz Lindsey.
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