3rd Circuit Upholds Dismissal of RESPA Mortgage Reinsurance Lawsuit

PHILADELPHIA — A federal appellate court has upheld dismissal of a suit accusing Bank of America and its captive reinsurer of violating the Real Estate Settlement Procedures Act by engaging in a mortgage reinsurance scheme, finding it is time-barred under the act’s one-year statute of limitations.

On Oct. 15, the 3rd Circuit U.S. Court of Appeals held that the doctrine of equitable tolling does not apply because plaintiffs failed to show defendants fraudulently concealed the nature and existence of the claims.

Thomas Riddle and Marilyn Fischer, individually and on behalf of a putative class, alleged that their mortgage lender, BOA, …