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CIFG to Settle Goldman Sachs, GreenPoint Mortgage Suits

July 9 (Bloomberg) -- CIFG Assurance North America Inc. agreed to settle lawsuits against Goldman Sachs Group Inc. and Capital One Financial Corp.’s GreenPoint Mortgage Funding Inc. over mortgage-backed securities.

The insurer sued Novato, California-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 weren’t disclosed. The insurer didn’t immediately return a message left at its New York headquarters seeking comment on the filings.

Capital One, based in McLean, Virginia, closed GreenPoint in August 2007. Julie Rakes, a spokeswoman for the company, didn’t immediately respond to an e-mail seeking comment on the filings. Michael DuVally, a spokesman for New York-based Goldman Sachs, declined to comment.

The cases are CIFG Assurance North America Inc. v. Goldman Sachs & Co., 652286/2011; CIFG Assurance North America Inc. v. GreenPoint Mortgage Funding Inc., 653449/2012, New York State Supreme Court, New York County (Manhattan.)

To contact the reporter on this story: Chris Dolmetsch in New York State Supreme Court at 8969 or

To contact the editor responsible for this story: Michael Hytha at

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