Reinsurer's Losses Disprove Kickback Suit: Wells Fargo

Law360, New York (March 17, 2011, 1:16 PM EDT) -- Wells Fargo & Co. moved for summary judgment Wednesday in a putative class action in Pennsylvania claiming the mortgage giant received illegal kickbacks from its mortgage reinsurer, arguing the plaintiffs’ theory was proven wholly wrong by the financial crisis.

Four years after plaintiff Kyle Liguori claimed Wells Fargo reinsurer North Star Mortgage Guaranty Reinsurance Co. had suffered “zero losses” on mortgage insurance it backed for Wells Fargo, the reinsurer has actually suffered millions of dollars in losses, the bank said in a memorandum of law in...
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