Assured Guaranty and Flagstar Bank entered into a settlement for alleged breaches of representations and warranties in insured residential mortgage-backed securities.
The agreement follows the February 5, 2013 decision by Judge Rakoff of the United States District Court for the Southern District of New York in favor of Assured Guaranty.
As part of the settlement, Assured Guaranty (AGO) will receive a cash payment of $105 million.
Flagstar will also reimburse Assured Guaranty in full for all future claims.
The comprehensive settlement releases both parties from any and all other future RMBS-related claims.