Insurer Prevails On Fraud Claim In Mortgage Securitization Action Against Countrywide
A New York trial court recently granted partial summary judgment in favor of MBIA Insurance Corporation (“MBIA”) on fraud and breach of warranty claims it had brought against Countrywide Home Loans, Inc. and various affiliates (collectively, “Countrywide”) concerning certain financial guaranty insurance policies that MBIA had issued in connection with residential mortgage-backed securitizations originated by Countrywide. MBIA Ins. Corp. v. Countrywide Home Loans, Inc., Index No. 602825/08, 2012 N.Y. Misc. LEXIS 2 (N.Y. Sup. Ct. 2012). The court concluded that, to succeed on its fraud and breach of contract claims, MBIA was not required to prove a direct causal link between its payment of claims under those policies and the alleged misrepresentations by Countrywide concerning the risks of the securitizations. 
http://ping.fm/8vgy8