Investments

UBS pays Assured Guaranty $358 million to settle RMBS claims

Monoline Assured Guaranty said it is more than half way complete in its quest to receive compensation for losses on residential mortgage backed securities the company insured.

Today, UBS (UBS) agreed to provide a cash payment of $358 million to Assured Guaranty (AGO) in order to resolve all representation and warranties claims the bond insurer brought against the RMBS issuer.

“This settlement further strengthens our balance sheet by providing a substantial cash payment and certainty related to the loss-sharing arrangement on future claims,” said Assured Guaranty CEO Dominic Frederico.

“We have now reached favorable settlements or been awarded compensation in court with respect to approximately 55% of the par outstanding of Assured Guaranty’s troubled legacy RMBS,” he added.

Additionally, UBS will reimburse Assured Guaranty for a portion of all future losses under a loss-sharing agreement to be put in place later this year.

For its part UBS still faces huge losses on bad mortgage bets from years ago.

More information will be released in the Assured Guaranty first quarter earnings report, due on May 9.

Most Popular Articles

Spouse of Quicken Loans executive sues AIME’s Anthony Casa for defamation

Theresa Niemiec, wife of Quicken Loans Executive Vice President Austin Niemiec, has filed a defamation lawsuit against Anthony Casa, CEO of the Association of Independent Mortgage Experts, for comments he made about her in a video message that he filmed and sent to her husband and others in the mortgage industry.

Jul 12, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please