According to Bloomberg, U.S. District Judge Berle Schiller denied Bank of America’s request to toss out a lawsuit over accepting alleged kickbacks from mortgage insurers because the statute of limitations had expired.
Homeowners who sued should have the opportunity to develop their argument, Schiller ruled this week.
Bloomberg has more on the initial dispute:
Three Pennsylvania homeowners sued Bank of America last year claiming the bank’s pay-to-play reinsurance scheme cost borrowers $284.7 million between 2004 and the end of 2011. That’s the amount the bank allegedly collected from private mortgage insurers as its share of insurance premiums for referring borrowers, according to the complaint.