Two Bank of America Corp. units have sued a subsidiary of MGIC Investment Corp. over allegations that the company is denying perfectly valid mortgage insurance claims.
The complaint was filed in the Superior Court of the State of California in San Francisco on Dec. 17 by Countrywide Home Loans Inc. and BAC Home Loans Servicing LP, according to a public filing by the mortgage insurer. Both companies are Bank of America subsidiaries based in Calabasas, Calif.
Mortgage Guaranty Insurance Corp. is named as defendant in the case.
Milwaukee-based MGIC is allegedly denying valid mortgage insurance claims submitted by the BoA businesses.
“We intend to defend MGIC against the allegations in the complaint vigorously,” MGIC stated in the filing.
The plaintiffs seek a declaratory relief regarding the proper interpretation of the flow insurance policies at issue, according to the filing.
