Lloyd's Says It Won't Pay Tab For Allied's Fraud Defense

Law360, Wilmington (May 16, 2012, 6:15 PM EDT) -- Lloyd’s of London underwriters filed suit Tuesday seeking to escape footing the bill for Allied Home Mortgage Capital Corp.’s defense against a government lawsuit accusing it of lending fraud that left federal mortgage insurers to cover $834 million in defaulted loans.

In its complaint filed in New York federal court, Lloyd’s asks for a declaration from the court that it is not obligated under a professional liability insurance policy to defend or indemnify Allied, one of the largest mortgage brokers in the U.S. The insurer says...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.