Monoline Insurer Assured Sues RBS in Connection with $1.15 Billion RMBS Securitization

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On March 26, Assured Guaranty Municipal Corp. sued RBS Securities in the United States District Court for the Southern District of New York for fraud in connection with a financial guaranty insurance policy that Assured provided to RBS as part of a $1.15 billion RMBS securitization. Assured alleges that it was induced to insure the certificates by RBS’s alleged material misrepresentations and omissions, including the loan-to-value and borrower-to-income ratios of underlying mortgages, owner occupancy status and adherence to originator underwriting standards. Assured alleges that it expects to pay $100 million in claims by investors in the securitization. Assured brings claims for common law fraud, aiding and abetting common law fraud and civil conspiracy to defraud, all under New York law. Complaint.