LOS ANGELES (CN) - Countrywide Financial Corp. fraudulently induced United Guaranty Mortgage Indemnity Co. to insure more than $1 billion in subprime mortgage loans, the insurer claims in Federal Court. The complaint involves Countrywide Asset-Backed Securities for which co-defendant Bank of New York Trust Co. served as trustee.
United Guaranty says it has paid $30 million already and is on the hook for hundreds of millions more. It is represented by John Purcell with Quinn Emanuel Urquhart.
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