DC Mortgage Trial

[grasshopper]

I have heard that there was a big court case where a Mortgage Bond was brought to trial and the judge awarded the plaintiff more then the bond was for. Does anyone know the name of this case or somewhere I can get more information on it? I hear it is having a big impact on all DC mortgage brokers.

[marietta68]

Originally Posted by grasshopper

I have heard that there was a big court case where a Mortgage Bond was brought to trial and the judge awarded the plaintiff more then the bond was for. Does anyone know the name of this case or somewhere I can get more information on it? I hear it is having a big impact on all DC mortgage brokers.

It's hard to perform legal research without more specific info, i.e., the specific court , either the plaintiff or defendant, and especially the date. An award greater than the bond amount wouldn't be unusual, however, and could have included legal fees incurred by the plaintiff. The date of the decision could be especially important because it's always possible the decision is being appealed. You didn't disclose the nature of the case (fraud? misrepresentation? license?) so we're in the dark.

Post if you learn more details.

[Admin]

I can't provide the details you are looking for, but can tell you what I heard through the surety grapevines (you underwriters are very gossipy!).

The judge awarded penalties larger than the bond amount, even though there was aggregate language specifically on the bond form. I believe some of the surety associations are helping on the appeal.

Our agency writes more new mortgage brokers than any other agency in the country for several years now. However, we no longer have any markets willing to write the D.C. mortgage broker bond due to this case.