U.S. Third Circuit Court of Appeals yesterday overturned  a lower court decision to dismiss a case against Countrywide that alleges the company was behind a nearly $900 million reinsurance kickback scheme which potentially affected hundreds of thousands of borrowers in clear violation of the Real Estate Settlement Procedures Act (RESPA).

The decision noted that Countrywide required homebuyers who took out mortgages with less than a 20% down payment to obtain private mortgage insurance. The insurance could only be obtained from one of seven private mortgage insurers approved by Countrywide.

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