Panel: Loan Servicers’ Statements In Fee-Splitting Suit Were Not Fraud On The Court

Mealey's (March 29, 2023, 4:45 PM EDT) -- NEW YORK — A Second Circuit U.S. Court of Appeals panel said a federal district court did not err in ruling that the alleged conduct of mortgage loan servicers and others in a mortgage default and fee-splitting lawsuit did not rise to the level of fraud on the court because the conduct did not impair the court’s “ability to fully and fairly adjudicate” the borrower’s case since the “fraud alleged could have been redressed” in a prior action....