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CIFG to Settle Goldman Sachs, GreenPoint Mortgage Bond Suits

JUL 10, 2013 12:58pm ET
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CIFG Assurance North America Inc. agreed to settle lawsuits against Goldman Sachs Group Inc. and Capital One Financial Corp.ís GreenPoint Mortgage Funding Inc. over mortgage-backed securities.

The insurer sued Novato, Calif.-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 werenít disclosed. The insurer didnít immediately return a message left at its New York headquarters seeking comment on the filings.

Capital One, based in McLean, Va., closed GreenPoint in August 2007. Julie Rakes, a spokeswoman for the company, didnít immediately respond to an email seeking comment on the filings. Michael DuVally, a spokesman for New York-based Goldman Sachs, declined to comment.

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