Mortgage Insurance Industry RESPA Cases

In a series of class action suits involving allegations of RESPA violations, Analysis Group was retained on behalf of the Joint Defense Committee of the mortgage insurance industry. The Joint Defense Committee included MGIC, PMI Mortgage Insurance Company, RMIC, and United Guaranty Corporation, representing approximately 80% of the industry. The plaintiffs claimed that -- in exchange for referrals -- the insurers offered services to lenders at prices below cost, thus violating anti-kickback provisions of RESPA. The products at issue included GSE pool insurance, contract underwriting, captive reinsurance, and financing arrangements.

Managing Principal Richard Starfield led a team that estimated potential industry exposure and assisted with settlement negotiations; determined whether the products at issue were adequately priced; and identified differences among the arrangements that necessitated examination on a lender-by-lender and transaction-by-transaction basis. MGIC, PMI, and United Guaranty Corporation settled with the plaintiffs after the court's summary judgment ruling. RMIC proceeded with litigation and defeated class certification.