Mortgage insurer Genworth Financial Inc. says it expects to pay ‘significantly less’ than the $834 million sought by Bank of America over denied insurance claims.
Last year, Genworth revealed that Bank of America was seeking in excess of $834 million, plus punitive damages, over denied claims stemming from ‘faulty’ mortgages. Genworth had denied coverage on certain loans – in particular, those that Bank of America had acquired from Countrywide Financial Corp. just prior to the financial crisis – after discovering that they had been improperly underwritten.
According to a Bloomberg News report, citing a regulatory filing, the two companies are working to resolve ‘certain, and potentially all, aspects of the disputes" over the defective loans.
‘We currently believe we may be able to resolve this matter for significantly less than $834 million, the previously disclosed amount of claimed damages,’ Genworth wrote in the filing.
For more, check out the Bloomberg News report.