Judge dismisses kickback case against PMI
A judge issued a summary judgment on Aug. 16 dismissing a lawsuit alleging that PMI Mortgage Insurance Co. gave lenders kickbacks in exchange for mortgage insurance referrals.
The summary judgment clears PMI on all charges.
The suit, G. Craig Baynham and Linnie Baynham v. PMI Mortgage Insurance Co., alleges that PMI provided mortgage lenders with products and services, such as reduced rate pool policy coverage and underwriting. The coverage and underwriting were illegally offered to lenders below market price in exchange for mortgage insurance business, according to prosecutors with the U.S. District Court, Southern Georgia District.
Judge Anthony A. Alaimo says PMI had not violated terms of the Real Estate Settlement Procures Act, a portion of which prohibits kickbacks. Alaimo's decision may be appealed.
Glen Corso, a spokesperson for PMI, says the judgment is a positive development.
"We had initially denied and continue to deny all the plaintiffs' allegations in the lawsuit," Corso says.