Alleged Loan Fallacies Reviewed In Flagstar $1B MBS Suit

Law360, New York (October 17, 2012, 9:06 PM EDT) -- A counsel for insurance firm Assured Guaranty Municipal Corp. examined several apparent egregious misrepresentations in home equity loans approved by Flagstar Bank FSB in Assured's contract suit against the bank over nearly $1 billion in mortgage-backed securities in New York federal court Wednesday.

Jacob Buchdahl of Susman Godfrey LLP, attorney for Assured, reviewed four loan files introduced by Flagstar's counsel during an extensive cross-examination of plaintiffs' expert witness Rebecca E. Walzak, a mortgage loan consultant. Walzak, founder and owner of rjbWalzak Consulting Inc., is a critical...
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