Court Orders Flagstar To Pay $90.1M To Assured

Posted by Orb Staff on February 06, 2013 No Comments
Categories : Residential Mortgage

13241_judicial3 Court Orders Flagstar To Pay $90.1M To Assured A U.S. District Court judge has ordered Troy, Mich.-based Flagstar Bancorp Inc. to pay $90.1 million to Assured Guaranty Municipal Corp. as reimbursement for problematic mortgage-backed securities.

Bloomberg News reports that Judge Jed Rakoff, in a 103-page opinion, found Flagstar to be in violation of agreements with Assured after the home equity loans underlying two of Flagstar's securities defaulted. Assured, a bond insurer, was forced to reimburse the holders of the securities following the defaults.

Flagstar issued a statement that said it ‘strongly disagrees with the court's ruling and intends to vigorously contest the outcome on appeal.’

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