The growing amount of cash that MBIA Inc. expects to see in the coming years from mortgage loan putbacks could boost the company’s balance sheet by billions of dollars, according to a third-quarter earnings conference call Wednesday. That could help restore its ratings so it could begin writing new insurance policies, but ongoing litigation contesting its 2009 ­restructuring continues to hurt the company’s outlook.

“Putbacks” refer to cash assets MBIA expects to recover from mortgage-loan originators who agree, or are forced, to repurchase faulty loans that formed the basis of MBIA-insured mortgage-backed securities.

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.