FDIC Can Press WaMu Mortgage Fraud Coverage Suit: Judge

Law360, Los Angeles (November 13, 2017, 9:09 PM EST) -- A Washington federal judge refused Monday to dismiss the Federal Deposit Insurance Corp.'s bid for more than $20 million in excess coverage to defray losses defunct Washington Mutual Bank suffered in a fraud scheme, rejecting insurers' position that the policies don't cover fraudulent mortgages originated before the policy period.

As receiver for the failed thrift, the FDIC said that excess financial institution bond policies issued by Arch Insurance Co., National Union Fire Insurance Co. of Pittsburgh, Pa., and underwriters at Lloyd's of London provide coverage for...
To view the full article, register now.