Flagstar Atty's Questions Clipped From $1B MBS Trial

Law360, New York (October 11, 2012, 8:32 PM EDT) -- The New York federal judge overseeing Assured Guaranty Municipal Corp.'s $1 billion suit over mortgage-backed securities issued by Flagstar Bank FSB ruled Thursday that a line of questioning by defense counsel on AGM's loan modeling practices would be admitted into the suit only for background purposes.

The bench trial centers on $900 million in mortgage-backed securities, issued by the bank and insured by AGM, that tanked during the housing market crash of 2008. U.S. District Judge Jed S. Rakoff said the models AGM had used to...
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