Flagstar Bancorp is facing further fallout from the housing crisis.

The $14.9-billion-asset company based in Troy, Mich., was sued Friday by MBIA, which charges Flagstar with misleading the company about the condition of loans that backed $1.02 billion in securities MBIA insured in the years that preceded the financial crisis.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry