Flagstar Docs Back Up Borrower's Job Claim In $1B MBS Suit

Law360, New York (October 26, 2012, 7:47 PM EDT) -- A purportedly fraudulent home loan application underwritten by Flagstar Bank FSB was found to contain accurate employment information, an attorney for the bank said Tuesday in an insurer's suit over nearly $1 billion in mortgage-backed securities issued by the bank.

Over the past two days, the loan has been scrutinized by attorneys for both Flagstar and New York insurance company Assured Guaranty Municipal Corp., which accuses the bank of lying about the origination and underwriting of home equity loans backing two pools of MBS it insured....
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