Flagstar Bancorp will pay $105 million to settle allegations it misrepresented the quality of loans backing securities insured by Assured Guaranty.

The settlement ends a lawsuit filed by Assured in 2011 that charged $13.1-billion-asset Flagstar, based in Troy, Mich., with breaching warranties on $900 million in securities. Those securities were issued in 2005 and 2006 and backed by home equity loans.

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