Countrywide Home Loans has filed suit against Triad Guaranty Insurance, charging the insurer encouraged lenders to offer risky mortgage products and now wants to cancel coverage on more than $9 billion in outstanding loans. In its complaint, which seeks $111 million in damages, Countrywide claims Triad is attempting to rescind coverage on a blanket basis for all of the loans the lender acquired from American Home Mortgage, as it “blames mortgage lenders, rather than the collapse of the real estate market or its own expanded appetite for risk” for the current problems in the mortgage business.
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