Assured Guaranty Municipal Corp v Flagstar Bank, FSB | NY judge finds Flagstar liable for $90.1 mln in mortgage case

February 6, 2013 in STOP FORECLOSURE FRAUD

Reuters-

* U.S. judge orders Flagstar to pay Assured Guaranty $90.1 million

* Lawsuit focused on quality of loans in mortgage-backed securities

* Assured had sought $116 million

By Nate Raymond

NEW YORK, Feb 5 (Reuters) - Flagstar Bancorp Inc was ordered on Tuesday to pay $90.1 million to bond insurer Assured Guaranty Ltd in a contract dispute over loans underlying $900 million in mortgage-backed securities.

U.S. District Judge Jed Rakoff in Manhattan ruled that Flagstar had materially breached contracts specifying the quality and characteristics of the loans to be packaged into the securities.

[REUTERS]

~ UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -------------------------------------x ASSURED GUARANTY MUNICIPAL CORP. f/k/a FINANCIAL SECURITY ASSURANCE INC., Plaintiff, -v- FLAGSTAR BANK, FSB; FLAGSTAR CAPITAL : MARKETS CORP.; and FLAGSTAR ABS, LLC,: Defendants. : -------------------------------------x