Arbitrator To Weigh Rescission Of Countrywide Insurance

Law360, New York (August 18, 2011, 6:42 PM EDT) -- A New York appeals court on Thursday told Republic Mortgage Insurance Co. that an arbitrator must sort out whether it can rescind insurance policies issued to Countrywide Financial Corp. and Bank of New York Mellon Trust Co. NA for allegedly misrepresenting the quality of loans.

At issue are five bulk and other types of mortgage insurance policies that Republic issued to the banks for more than 1,500 underlying mortgages. The loans eventually started to default, and the banks tried to collect on the policies. But Republic...
To view the full article, register now.