Assured Wins $1B MBS Contract Suit Against Flagstar
By Jake Simpson
Law360, New York (February 5, 2013, 7:48 PM EST) -- A New York federal court on Tuesday granted judgment in favor of Assured Guaranty Municipal Corp. in its contract suit over Flagstar Bank FSB's approval of home equity loans behind nearly $1 billion in mortgage-backed securities, awarding the insurer $90.1 million in damages plus interest and attorneys' fees.
The ruling comes roughly three months after a tense, drawn-out trial that included 12 days of testimony spread over nearly a month. U.S. District Judge Jed S. Rakoff, who heard the case in a bench trial, ruled that...