RESPA Suit Against Mortgage Lender, Captive Reinsurer Time-Barred, Pa. Federal Judge Rules

PHILADELPHIA — A suit accusing Flagstar Bank and its captive reinsurer of violating the Real Estate Settlement Procedures Act by engaging in a mortgage reinsurance scheme is time-barred under the act’s one-year statute of limitations, a Pennsylvania federal judge has ruled.

On June 26, Judge Berle M. Schiller of the U.S. District Court for the Eastern District of Pennsylvania dismissed the action, finding the doctrine of equitable tolling does not apply because plaintiffs failed to show defendants fraudulently concealed the nature and existence of the RESPA claims.

Francis Anusky and Renita Bethune, individually and on behalf of a putative class, …