MBIA Unit Sues Countrywide Over Securitizations

The insurance unit of MBIA Inc. has filed suit against several divisions of Countrywide Financial Corp., according to a Dow Jones Newswires report.

In the suit, MBIA is claiming that Countrywide fraudulently represented its loan underwriting standards for home equity loans associated with 10 securitization pools totaling over $14 billion.

MBA says that based on Countrywide's allegedly false representations, it provided billions of dollars in credit enhancements through guarantees of trust obligations on certain classes of residential mortgage-backed securities.

Source: Dow Jones Newswires

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