Bloomberg News

CIFG to Settle Goldman Sachs, GreenPoint Mortgage-Bond Suits (1)

July 09, 2013

CIFG Assurance North America Inc. agreed to settle lawsuits against Goldman Sachs (GS:US) Group Inc. and Capital One (COF:US) Financial Corp.’s GreenPoint Mortgage Funding Inc. over mortgage-backed securities.

The insurer sued Novato, California-based GreenPoint in New York State Supreme Court in Manhattan in 2009, accusing the company of violating its mortgage-underwriting guidelines. Justice Bernard Fried threw out the lawsuit in 2010, and CIFG filed a new complaint against GreenPoint in October. CIFG sued Goldman Sachs in the same court in August 2011 over $275 million in mortgage-backed securities.

CIFG has agreed in principle to settle the two cases, the insurer said in separate court documents filed this week. Terms weren’t disclosed. The insurer didn’t immediately return a message left at its New York headquarters seeking comment on the filings.

Capital One, based in McLean, Virginia, closed GreenPoint in August 2007. Julie Rakes, a spokeswoman for the company, didn’t immediately respond to an e-mail seeking comment on the filings. Michael DuVally, a spokesman for New York-based Goldman Sachs, declined to comment.

The cases are CIFG Assurance North America Inc. v. Goldman Sachs & Co., 652286/2011; CIFG Assurance North America Inc. v. GreenPoint Mortgage Funding Inc., 653449/2012, New York State Supreme Court, New York County (Manhattan.)

To contact the reporter on this story: Chris Dolmetsch in New York State Supreme Court at 8969 or cdolmetsch@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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Companies Mentioned

  • GS
    (Goldman Sachs Group Inc/The)
    • $179.11 USD
    • 1.46
    • 0.82%
  • COF
    (Capital One Financial Corp)
    • $82.06 USD
    • 0.47
    • 0.57%
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