Mortgage Reinsurance Action May Proceed Against PNC, Reinsurer, Pa. Federal Judge Rules

PHILADELPHIA — A lawsuit accusing PNC Services Group Inc. and its captive reinsurer of violating the Real Estate Settlement Procedures Act of 1974 by carrying out a captive reinsurance scheme may proceed because the plaintiffs have shown that their claims may be equitably tolled, a Pennsylvania federal judge has ruled.

On Aug. 15, Judge Lawrence F. Stengel of the U.S. District Court for the Eastern District of Pennsylvania found the plaintiffs adequately alleged that they were prevented from recognizing the validity of their claims by defendants’ fraudulent concealment. The judge also found the plaintiffs had sufficiently pled a claim of …