Assured Guaranty Municipal Corp. will terminate a lawsuit it has pending against Flagstar Bancorp and will not pursue any future related claims under a settlement agreement the two entities announced last week. Under the agreement’s terms, Flagstar will pay Assured $105 million to settle the suit filed by the Bermuda-based bond insurer in 2011 related to $902 million of non-agency MBS it insured in 2005 and 2006 that were backed by home-equity lines of credit. The suit claimed the HELOCs did not comply with the representations and warranties made by the bank. In February, a New York federal judge ruled...