Witness In $1B MBS Trial Calls Flagstar Underwriting Spotty

Law360, New York (October 12, 2012, 7:57 PM EDT) -- The head of a mortgage risk consulting firm testified Friday in an insurer's contract case against Flagstar Bank FSB that the underwriting process for the loans behind roughly $1 billion in mortgage-backed securities issued by Flagstar was replete with deficiencies.

Rebecca A. Walzak, founder and owner of rjbWalzak Consulting Inc., is a critical expert witness for insurer Assured Guaranty Municipal Corp., which accuses Flagstar of lying about the origination and underwriting of thousands of home equity loans. Walzak's assertion highlighted the third day of testimony in...
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