Flagstar Agrees To Pay $110M To Settle MBIA's MBS Suit

Law360, New York (May 2, 2013, 10:46 PM EDT) -- A Flagstar Bancorp Inc. unit agreed to pay $110 million to settle a lawsuit by bond insurer MBIA Insurance Corp. over claims that it misled it about the quality of loans underlying more than $1 billion in mortgage-backed securities it insured, Flagstar said Thursday.

Flagstar Bank FSB entered into the settlement to exit the lawsuit, according to holding company Flagstar Bancorp, which said that the hefty settlement would not significantly hurt its finances since it had already factored such legal expenses into its budget, according to...
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Case Information

Case Title

MBIA Insurance Corporation v. Flagstar ABS, LLC et al


Case Number

1:13-cv-00262

Court

New York Southern

Nature of Suit

Insurance

Judge

Jed S. Rakoff

Date Filed

January 11, 2013

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