Mortgage Insurer Shakes JPMorgan Loan Coverage Suit

Law360, New York (May 5, 2011, 12:42 PM EDT) -- A New Jersey federal judge on Wednesday tossed JPMorgan Chase Bank NA's lawsuit claiming Republic Mortgage Insurance Co. improperly attempted to rescind mortgage insurance coverage on nearly 2,000 residential loans after the recession hit.

In the suit, JPMorgan contended that Republic should have first obtained blessings from a court or arbitrator before rescinding the policies, which covered residential loans with borrowers making down payments of less than 20 percent of the property's price.

But Judge Stanley Chesler was unpersuaded by JPMorgan's argument that Republic had violated...
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