Flagstar Bancorp (FBC) has set aside $161 million to cover lawsuits over its mortgage-underwriting practices.

The Troy, Mich., company announced Friday that it revised its fourth-quarter earnings to reflect last week's court judgment ordering the bank to pay $90 million, plus fees, to bond insurer Assured Guaranty Municipal Corp, formerly Financial Security Assurance. Flagstar increased its reserve for pending and threatened litigation by $161 million, to $244.6 million, as a result of this decision and other pending lawsuits, it said.

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