9th Cir. Denies Mortgage Reinsurer’s Petition for Rehearing in RESPA Case

SAN FRANCISCO — The 9th Circuit U.S. Court of Appeals has refused to reconsider its reinstatement of an action accusing a mortgage insurer and a reinsurer of entering fraudulent captive reinsurance arrangements that violated the Real Estate Settlement Procedures Act (RESPA).

The appellate panel denied a motion for rehearing filed by PHH Corp. and Atrium Reinsurance Co., letting stand its ruling that the U.S. District Court for the Eastern District of California should have granted plaintiffs’ motion to modify a final pretrial order, which would have allowed them to present evidence of economic injury in light of the Supreme Court’s …