FGIC Targets Ally Over Additions To $991M MBS Trust

Law360, New York (February 6, 2012, 6:51 PM EST) -- New York stock insurance company Financial Guaranty Insurance Co. last week accused Ally Financial Inc. and its mortgage subsidiaries of violating their contract by adding new loans into the $991 million package of residential mortgage-backed securities FGIC insured in 2005.

In its latest suit against Ally in New York federal court, FGIC, whose parent company FGIC Corp. filed for bankruptcy protection in 2010, claimed it suffered tens of millions of dollars in losses because of a policy it issued to GMAC Mortgage LLC for a 2005...
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