Bank of America is getting slapped with another lawsuit by Dallas County, that if successful could be a harbinger for many similar suits to come, Bloomberg News reported. Meanwhile, according to Reuters, the bank — the largest in America — is selling off $880 million of U.S. real estate assets to a group of investors comprised of Square Mile Capital Management, Invesco and Canyon Capital Realty Advisors.

The lawsuit names BofA and MERS, an electronic system for processing mortgages that acts as the lender’s nominee and becomes the mortgagee, provided that the loan was originated by one of the financial institutions that owns MERS. Those include Citigroup, JPMorgan Chase, the Mortgage Bankers Association, American Land Title Association, Freddie Mac and Fannie Mae. [more]

Bank of America plans to sell or close its correspondent-mortgage unit as CEO Brian Moynihan tries to halt losses on home loans, Bloomberg News reported.

“We intend to sell the correspondent-mortgage lending division or, if a suitable deal is not identified, we will consider other options,” including winding down the business, Dan Frahm, a company spokesperson, said.

The bank’s mortgage operations had $14.5 billion losses in the second quarter as investors insisted that the firm buy back soured loans. Shifting capital rules have also been pushing BofA to assume fewer new contracts to oversee outstanding debt, a key part of the correspondent mortgage business, Bloomberg said. [more]