GMAC Kickback Suit Put On Hold For High Court Ruling

Law360, New York (August 19, 2011, 3:34 PM EDT) -- A Pennsylvania judge stayed a putative class action against GMAC Mortgage LLC on Wednesday, saying an upcoming U.S. Supreme Court case could determine whether the plaintiffs could sue without having been damaged by an alleged kickbacks scheme between GMAC and mortgage reinsurers.

The plaintiffs, homeowners with mortgages, claim they were required to obtain private mortgage insurance and that GMAC's arrangements with the resinsurers violated the Real Estate Settlement Procedures Act, which prohibits the payment of kickbacks for referrals of expensive mortgage-related services such as insurance....
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