American Financial Resources, a Parsippany, N.J.-based mortgage lender, has filed a federal lawsuit against Countrywide Home Loans Servicing LP and Bank of America seeking more than $10 million in damages over an alleged breach of contract, negligence and fraud.
The company filed the suit in Newark, N.J. over an October 2008 deal where Countrywide agreed to "subservice'' an estimated $2 billion in loans for the New Jersey financial firm.
Bank of America, which bought the California-based Countrywide in July 2008, has not yet answered the 21-page complaint. A spokesperson for Bank of America has declined comment.
Bank of America Corp., the second-biggest U.S. bank by assets, is at the center of several lawsuits claiming the lender sold defective mortgage-backed securities to investors. Last month, the U.S. Justice Department filed a $1 billion fraud lawsuit against Bank of America Corp., claiming the bank and its Countrywide Financial unit generated thousands of defective residential mortgage loans and sold them to Fannie Mae and Freddie Mac.