Mortgage Co. Seeks Defense in Lehman Contract Suit

Law360, New York (July 29, 2011, 9:37 PM EDT) -- American Federal Mortgage Corp. on Friday sued certain underwriters at Lloyd's of London in New Jersey, saying the insurer is obligated to defend and indemnify AFMC in a breach of contract suit brought by bankrupt investment banking giant Lehman Brothers Holdings Inc.

Flanders, N.J.-based AFMC went after Lloyd's in a third-party complaint filed within Lehman's suit, which claims that it breached terms of a loan agreement that guaranteed the mortgage loans did not originate from any misrepresentations, fraud or predatory lending practices.

Lehman claims that the...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.