Mortgage Reinsurance Kickback Suit Untimely Under RESPA, Federal Judge Rules

PITTSBURGH — A Pennsylvania federal judge has dismissed a class action accusing Citibank and its captive reinsurers of engaging in a mortgage reinsurance kickback scheme, finding the Real Estate Settlement Practices Act’s one-year statute of limitations was not equitably tolled.

On July 19, Judge Mark R. Hornak of the U.S. District Court for the Western District of Pennsylvania found the plaintiffs failed to explain how they became aware of the alleged scheme and why they could not have discovered the possible existence of their claims before the one-year limitation period expired.

On Jan. 13, 2012, Linda Menichino and 12 other …