This was a long time in coming, but the verdict finally arrived. Judge Rakoff ordered Flagstar Bancorp to pay $90.1 million to bond insurer Assured Guaranty (AGO) in a contract dispute over loans underlying $900 million in mortgage-backed securities. Flagstar materially breached contracts specifying the quality and characteristics of the loans to be packaged into the securities.
This is very positive news for AGO and perhaps for MBI too. This ruling increases the chances of other, larger banks settling with both of these companies in similar cases.
0 Response to “Flagstar Found Liable for $90.1 mln in Assured Guaranty’s Mortgage Case”