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February 6, 2013
05:12 EDTAGO, FBCAssured Guaranty Flagstar Bancorp awarded $90M in case against Flagstar Bank
Following the decision by Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York in Assured Guaranty's (AGO) case seeking recoveries from Flagstar Bank (FBC) for breaches of representations and warranties, or R&W, in insured residential mortgage-backed securities, or RMBS, Assured Guaranty President and CEO Dominic Frederico said: "Judge Rakoff gave us an important victory, awarding us substantially all the damages we had sought, including approximately $90M as compensation for claims paid, as well as interest, costs and attorneys' fees still to be determined. This is the first trial related to RMBS R&W putbacks that has come to a final court ruling, and it sets a strong precedent in support of the rights of Assured Guaranty in these cases. The court recognized and clearly articulated the responsibility of an R&W provider to honor its contractual obligations to purchase defective mortgage loans." The decision is consistent with preliminary rulings from other courts in legal actions that have called on RMBS R&W providers to take responsibility for contractual commitments.
News For AGO;FBC From The Last 14 Days
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April 23, 2014
13:00 EDTFBCFlagstar Bancorp downgraded to Market Perform from Outperform at FBR Capital
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05:13 EDTFBCFlagstar Bancorp reports Q1 EPS ($1.50), may not compare to consensus 19c
Reports Q1 book value per share $19.29. Reports Q1 Tier 1 capital ratio 23.62%. Sandro DiNello, the company's CEO said, "Our first quarter results were largely in-line with expectations except for our provision for loan losses and a one-time adjustment to our repurchased loans. During the quarter, we made the determination to significantly bolster our loan loss reserve estimates which results in an increase to the loss coverage period from approximately 12 months to 18 months. As a result of this action, which was not driven by charge-offs, the allowance for loan losses increased to $307M at March 31, from $207M at December 31, 2013 and the ratio of allowance for loan losses to non-performing loans increased to 286.9% from 145.9% at December 31, 2013. Additionally, we recorded a $21.1M reduction to the originally recorded fair value of loans that we repurchased from the GSEs and which were performing at that time."

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