When Mortgage Backed Securities are sold 'Collateral Tapes' are released to ratings agencies and monoline insurers for their use to base ratings and rate risk on. These are electronic files containing a breakdown of all Mortgage Loans in the Securitization. Due dilligence over "Collateral Tapes" would have given no indication of whatever monkey business servicers were up to prior to and after insurers finalized deals, so I would think insurers would have strong basis for fraud claims, particularly if they can prove complicity between CDS profiteers and servicers.
What I don't know is how "scheme liability" would impact potential cases given recent
Stoneridge Investment Partners LLC v. Scientific Atlanta Inc decision.
Monoline insurers have been taking a huge hosing so I can't yet see where they might be 'in it together'. They monitor risk and MSF has been out in the open way long enough for them to be knowledgeable of risk it poses to them. More like $krew me once, shame on you, $krew me twice, shame on me.