Insurers Get Lender's Mortgage Fraud Suit Trimmed

Law360, New York (April 17, 2012, 8:48 PM EDT) -- A New Jersey federal judge on Tuesday threw out a bad faith claim against a trio of title insurers brought by wholesale residential mortgage lender Walsh Securities Inc. in a 15-year-old suit over a mortgage fraud scam for which WSI sought $450 million.

In awarding Commonwealth Land Title Insurance Co., Fidelity National Title Insurance Co. of New York and Nations Title Insurance of New York summary judgment on the bad faith claim, U.S. District Judge Dickinson R. Debevoise also denied WSI's motion for summary judgment on...
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