Mortgage Reinsurance Kickback Suit Against HSBC Slashed

Law360, New York (November 14, 2012, 2:11 PM EST) -- A California federal judge on Tuesday trimmed a proposed class action accusing HSBC USA Inc.’s reinsurance unit of extracting kickbacks from mortgage insurers, which allegedly resulted in steeper premiums for borrowers, finding the complaint was filed several years too late.

U.S. District Judge Lawrence J. O’Neill dismissed claims of unjust enrichment and allegations that HSBC violated the Real Estate Settlement Procedures Act from a suit brought by homeowner Lucas McCarn related to a loan he took out in 2006. The judge said McCarn had not adequately...
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