A lawsuit that accuses both Citigroup (NYSE: C) and MidFirst Bank of Oklahoma City of forcing homeowners to purchase flood insurance in excess of amounts required by law may advance, a federal judge in Utica, N.Y., has ruled.

The banks must face allegations by Gordon Casey, a borrower in Syracuse, N.Y., and Duane Skinner, a borrower in Maryland, of wrongdoing in the force-placing of flood insurance on their homes, U.S. District Judge David Hurd held Wednesday.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.