Bad Loans Backed $277M Mortgage Notes Sale, Insurer Says

Law360, New York (October 3, 2012, 1:19 PM EDT) -- CIFG Assurance North America Inc. sued GreenPoint Mortgage Funding Inc. in New York state court on Monday, claiming the defunct lender fraudulently originated mortgage loans that were part of $277 million in mortgage pass-through certificates partially insured by CIFG.

GreenPoint provided false information and omitted information about the quality of $58 million in residential mortgage loans it originated and sold to a trust under a 2007 agreement with mortgage units of Goldman Sachs Group Inc., according to the complaint. In doing so, GreenPoint fraudulently induced CIFG...
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