Syncora Holdings announced on July 17 that its unit Syncora Guarantee had settled claims related to RMBS with Countrywide Financial Corp., Bank of America Corp. and their affiliates.
Based in New York, Syncora is in the business of financial guarantee insurance.
The company had sued BofA back in 2009 to recover losses on bond deals backed by home loans made by Countrywide Financial. Syncora said it was misled into insuring these RMBS, claiming that Countrywide had misrepresented the quality of the underlying mortgages. BofA bought Countrywide in 2008.
Syncora Guarantee will receive $375 million from Countrywide and BofA for releasing its claims related to the insurance it provided to five second lien deals that were the subject of litigation in addition to claims related to nine other first and second lien transactions.
In addition, in an effort to terminate other relationships between the parties, the Company transferred assets to subsidiaries of BofA and subsidiaries of BofA transferred or agreed to transfer to Syncora certain of its and Syncora's preferred shares, surplus notes and other securities, according to a press release from the firm.
Since posting its first quarter 2012 statutory financial statements, Syncora has remediated several credits with total cash disbursements by it of roughly $96 million.