CIFG to Settle Goldman Sachs, GreenPoint Mortgage Suits
CIFG Assurance North America Inc. agreed to settle lawsuits against Goldman Sachs (GS) Group Inc. and Capital One (COF) 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.)
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