Flagstar to appeal ruling on insurance coverage in mortgage-fraud case.(Flagstar Bancorp Inc.)(Brief article)

Crain's Detroit Business,  November, 2006  by Snavely, Brent

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Byline: Brent Snavely Troy-based Flagstar Bancorp Inc. said Wednesday that it plans to appeal the dismissal of a lawsuit it filed against Chubb Group of Insurance Cos. over a coverage dispute. The coverage dispute occurred when Flagstar discovered in March 2004 that a series of mortgages totaling $22.4 million were fraudulently obtained by a mortgage company that was presenting forged documents for transactions that never took place.

Flagstar (NYSE: FBC) seized cash and property and also recovered more through litigation. However, Flagstar sought reimbursement under its ...

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