Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

July 9 (Bloomberg) -- Capital One Financial Corp.’s GreenPoint Mortgage Funding Inc. was sued over about $400 million in losses on mortgage-backed securities by investor trustee U.S. Bancorp.

GreenPoint mortgage loans sold to Lehman Brothers Holdings Inc. and bundled into securities were riskier than the lender represented, the trustee said in a complaint filed today in Manhattan federal court.

“This action arises out of GreenPoint’s failure to stand by its guarantees despite the defects found in the loans that it originated and then sold for hundreds of millions of dollars,” U.S. Bancorp said. The trustee wants GreenPoint to repurchase the allegedly defective loans.

Capital One, based in McLean, Virginia, shut GreenPoint in August 2007, less than a year after acquiring its parent company, Long Island’s North Fork Bancorp. A Capital One spokesman couldn’t immediately be reached for comment on the complaint.

The case is Lehman XS Trust, Series 2006-4N v. GreenPoint Mortgage Funding Inc., 13-cv-04707, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: David McLaughlin in New York at

To contact the editor responsible for this story: John Pickering at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.