Flagstar Bancorp (FBC) in Troy, Mich., will pay $110 million to settle allegations that it misrepresented the quality of more than $1 billion of private label mortgage-backed securities it sold to investors.
The settlement ends a suit that MBIA Insurance Corporation
Flagstar said Thursday that the settlement will have no significant financial impact due to its high litigation reserves. In February, Flagstar said it would
The $13.1 billion-asset company said Thursday's settlement would help it move past its troubles related to the housing crisis. It has been
"Today's announcement represents another major milestone in putting legacy challenges behind us," Tierney said in Thursday's news release. "We can now focus more time and attention on our national mortgage business and our community banking operations in Michigan."
Flagstar's stock was up nearly 5% in trading Friday morning, to $13.25, following the settlement announcement.