4 Mortgage Insurers Cut From HSBC Kickback Scheme Suit

Law360, New York (May 29, 2012, 9:16 PM EDT) -- A California federal judge on Friday dismissed four mortgage insurers from a proposed class action over an alleged kickback scheme with HSBC USA Inc.'s reinsurance unit, saying the plaintiff had not shown there was any conspiracy among the mortgage insurers.

U.S. District Judge Lawrence J. O'Neill said that the proposed class of mortgage loan recipients, headed by lead plaintiff Lucas McCarn, had not pled facts that would suggest PMI Mortgage Insurance Co., Republic Mortgage Insurance Co., Mortgage Guaranty Insurance Corp. and Radian Guaranty Inc. had anything...
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