Reuters-

* U.S. judge orders Flagstar to pay Assured Guaranty $90.1 million

* Lawsuit focused on quality of loans in mortgage-backed securities

* Assured had sought $116 million

By Nate Raymond

NEW YORK, Feb 5 (Reuters) – Flagstar Bancorp Inc was ordered on Tuesday to pay $90.1 million to bond insurer Assured Guaranty Ltd in a contract dispute over loans underlying $900 million in mortgage-backed securities.

U.S. District Judge Jed Rakoff in Manhattan ruled that Flagstar had materially breached contracts specifying the quality and characteristics of the loans to be packaged into the securities.

[REUTERS]

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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
————————————-x
ASSURED GUARANTY MUNICIPAL CORP.
f/k/a FINANCIAL SECURITY ASSURANCE
INC.,

Plaintiff,

-v-

FLAGSTAR BANK, FSB; FLAGSTAR CAPITAL :
MARKETS CORP.; and FLAGSTAR ABS, LLC,:

Defendants. :
————————————-x

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