In the first residential mortgage-backed securities putback lawsuit to reach a decision in trial, the court ruled in favor of Assured Guaranty regarding breach of contract claims against Troy, Mich.-based Flagstar Bancorp Inc.

Judge Jed Rakoff of the United States District Court for the Southern District of New York gave the decision in a 103-page opinion late Tuesday night, finding that the loans at issue "pervasively breached Flagstar's contractual representations and warranties."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.