MBIA Sues Countrywide Over Home Equity Loans

Law360, New York (October 2, 2008, 12:00 AM EDT) -- The insurance unit of MBIA Inc., the world's largest bond insurer, has sued mortgage lender Countrywide Financial Corp. for allegedly misrepresenting its underwriting standards regarding the securitization of pools of more than $14 billion in MBIA-guaranteed home equity loans that are now in default or foreclosure.

According to the complaint filed Tuesday in New York Supreme Court, MBIA Insurance Corp. sued several units of Countrywide for fraud, negligent misrepresentation and breach of contract related to Countrywide's allegedly deliberate misconduct as a loan originator and its false...
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