Insurers Slam Countrywide's Fraud Causation Demand

Law360, New York (October 5, 2011, 9:15 PM EDT) -- Monoline insurers suing Countrywide Financial Corp. told a New York judge Wednesday that they shouldn't have to prove that alleged misrepresentations Countrywide made about the quality of securitized loans led to those loans' default.

MBIA Inc. and Syncora Guarantee Inc. allege that Countrywide induced them into insuring mortgage-backed securities by making the loans in those securities seem more creditworthy than they actually were. Since those loans began to default en masse in 2007 and 2008, they've been forced to pay out billions of dollars in insurance...
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