JPMorgan Unit Can't Duck Syncora's $666M MBS Repo Claims
By Sindhu Sundar
Law360, New York (June 19, 2012, 10:55 PM ET) -- A New York federal judge found Tuesday that JPMorgan Chase & Co. unit EMC Mortgage Corp.’s allegedly false warranties about the quality of loans underlying $666 million in mortgage-backed securities that Syncora Guarantee Inc. insured would be enough to trigger their repurchase agreement.
In a ruling that marked a significant win for the financial guarantee insurance provider, U.S. District Judge Paul Crotty found New York law requires that insurers be provided accurate information before they issue their policies. The repurchase agreement between the two had not...