PHH, Captive Reinsurer, Granted Partial Judgment on the Pleadings in Mortgage Reinsurance Fraud Case

SACRAMENTO, Calif. — A California federal judge has awarded mortgage lender PHH Corp. and its captive reinsurer partial judgment on the pleadings in a mortgage reinsurance fraud case, finding the plaintiff failed to establish that the one-year statute of limitations in the Real Estate Settlement Procedures Act should be equitably tolled.

However, in the Aug. 11 order, Senior Judge Anthony W. Ashii of the U.S. District Court for the Eastern District of California granted the plaintiff leave to cure deficiencies in her claims of fraudulent concealment.

In June 2008, a group of individuals brought a class action against PHH Corp., …