Witness Defends Flagstar Loan Practices In $1B MBS Suit

Law360, New York (November 7, 2012, 7:18 PM EST) -- A mortgage loan expert witness for Flagstar Bank testified in New York federal court Tuesday that the bank's loan underwriting practices were sound, rebutting the claims of a New York insurer in its contract suit against the bank over nearly $1 billion in mortgage-backed securities.

John Griggs, owner of operational credit risk consultant Solutions Associates LLC, testified that Flagstar's loan approval process was controlled and sound. Plaintiff Assured Guaranty Municipal Corp. has claimed that the bank lied about the origination and underwriting of thousands of home...
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