Judge Dismisses Breach Of Contract Claim In Coverage Dispute Over Mortgage Fraud
Mealey's (November 14, 2017, 12:40 PM EST) -- SEATTLE — A Washington federal judge on Nov. 13 dismissed a breach of contract claim brought by the Federal Deposit Insurance Corp. against fourth-level excess insurers in a coverage dispute arising from fraudulent mortgage loans, finding that third-level excess insurance has not been exhausted (Federal Deposit Insurance Corp. v. Arch Insurance Company, et al., No.14-0545, W.D. Wash., 2017 U.S. Dist. LEXIS 187224).
(Order available. Document #13-171116-015R.)
In the early 2000s, Washington Mutual Bank (WaMu) contracted with third parties to originate residential real property mortgage loans that...