Monolines that have brought MBS lawsuits to court have used the same facts that class actions and put-back claims have made, but have used a different theory of law as a legal basis for their arguments.

These insurers have claimed that the banks defrauded them by inducing them to provide insurance on devalued RMBS loans. Since the facts presented to them about these mortgage securities were not accurate, they want to renege on the policies they have issued against these bonds. In some cases, the bond insurers have paid out of a policy to get money back that they have already paid.

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