Pa. Federal Judge Allows Limited Discovery on Tolling Issue in Mortgage Reinsurance Case

SCRANTON, Pa. — A Pennsylvania federal judge has refused to dismiss a suit accusing M&T Bank Corp. and its captive reinsurer of violating the Real Estate Settlement Procedures Act by engaging in a mortgage reinsurance scheme, finding a question of fact as to whether the claims were equitably tolled.

Chief Judge Christopher C. Conner of the U.S. District Court for the Middle District of Pennsylvania allowed the parties to engage in limited discovery as to the statute of limitations and equitable tolling doctrine.

The plaintiffs’ mortgage loans were executed between Oct. 19, 2004, and Dec. 29, 2008. Each plaintiff was …