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Loan Modification

: Mortgage Lender Implode-o-Meter

MBIA Sued over Business Split

By Implode-Explode Heavy Industries

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Monoline bond insurer MBIA faces a lawsuit by 18 financial firms over its decision to split its mortgage exposures off of its municipal-bond insurance portfolio.

The allegations claim MBIA?s split and the resulting transfer of $5bn out of its main insurance business to a muni-bond insurance company constituted an unlawful effort to escape contractual obligations to cover mortgage security-related losses, according to a report filed at the Wall Street Journal.

Full post as published by Mortgage Lender Implode-o-Meter on May 14, 2009 (boomark / email).

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