VNB Realty Inc. is suing Bank of America (BAC) alleging it sold the real estate investment trust more than $25 million in securities backed by toxic mortgages. The case is one of dozens that have popped up in the past two years as banks, investors, trustees and other parties sort through representations and warranties made on mortgages that soured. Sealink Funding recently filed similar lawsuits against BofA and JPMorgan Chase (JPM). In its suit, VNB Realty claims BofA, which originated most of the loans, "misrepresented the underwriting standards, the loan-to-value ratios and the percentage of loans secured by owner-occupied residential properties." The catalyst for the suit, according to court filings, is the Federal Housing Finance Agency complaint against the banking giant that was filed Sept. 2. In that complaint, the plaintiffs say Fannie Mae and Freddie Mac sued BofA because the securities the government-sponsored enterprises acquired contained misrepresentations on underwriting standards. The VNB lawsuit reiterates many of the allegations in the FHFA lawsuits. VNB specifically raises concerns about one securitization of mortgages that both the REIT and the GSEs invested in. The securitization is known as Banc of America Alternative Loan Trust Series 2006. That year, VNB purchased certificates in the trust, which at the time were rated triple-A. The REIT said its certificates performed even worse than those purchased by Fannie and Freddie. As of August, the GSEs had 7.5% to nearly 17% of the loans backing the certificates from BOAA 2006-1 that were delinquent 90 days or more. VNB, meanwhile, had more than 24% of its loans backing the certificates delinquent by 90 days or more, according to the lawsuit. Write to Kerri Panchuk.