FHFA Says Ill. Court Has No Authority In MGIC Coverage Suit

Law360, New York (July 20, 2012, 6:31 PM EDT) -- The Federal Housing Finance Agency said Friday that an Illinois federal court lacks jurisdiction over Mortgage Guaranty Insurance Corp.'s suit against it and Freddie Mac inasmuch as the suit would restrain the agency's functioning as conservator for the government-backed mortgage giant.

In May, MGIC slapped Freddie Mac with a complaint seeking equitable relief to block the mortgage company's claim that it was owed billions of dollars in mortgage loan insurance. But the FHFA insists that MGIC's suit violates the Housing and Economic Recovery Act of 2008,...
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