Assured Guaranty Ltd. announced late Friday that it has settled its lawsuit against Flagstar Bank for breaches of representations and warranties in insured residential mortgage-backed securities.
Flagstar will pay Assured Guaranty $105 million in cash as part of the settlement. The bank will also reimburse Assured Guaranty in full for all future claims on its insurance policies.
The agreement follows the February 5th decision by Judge Jed Rakoff of the United States District Court for the Southern District of New York in favor of Assured Guaranty regarding breach of contract claims against Flagstar.
The settlement resolves all RMBS claims of Assured Guaranty against Flagstar.