A federal appeals court reinstated a lawsuit alleging Countrywide Financial Corp. violated the Real Estate Settlement Procedures Act through a mortgage insurance captive reinsurance kickback scheme.

The suit was filed in 2006. Last year a trial court judge dismissed the case, ruling there was a lack of jurisdiction. But in a ruling last week, Judge Maryanne Trump Barry of the U.S. Court of the Appeals for the Third Circuit said: "What is before us for decision turns on a question of statutory interpretation — does or does not the plain language of RESPA Section 8 indicate that Congress created a private right of action without requiring an overcharge allegation? We conclude that it does."

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