Borrowers Score Class Cert. In Mortgage Suit Against RBS

Law360, Chicago (August 24, 2012, 8:03 PM EDT) -- A California federal judge on Thursday agreed to certify a class of borrowers alleging that defunct wholesale mortgage lender Paul Financial LLC issued deceptive loans doomed for negative amortization that it later sold to RBS Financial Products Inc., finding common issues trumped individual ones.

U.S. District Judge Susan Illston also rejected defendant RBS' motion for summary judgment, ruling that genuine issues of material fact remained on several issues, including whether RBS substantially assisted Paul Financial in originating the allegedly fraudulent loans at issue.

In granting the...
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