Another Troublesome YSP Case

Yet another yield spread premium law suit has been certified as a class action, this time from Minnesota.The court's action in this case, Brancheau vs. Residential Mortgage and Mercantile Bank, is disturbing because Minnesota is in a circuit that had previously denied class certification of another case, said National Association of Mortgage Brokers executive vice president Brian J. Kinsella at the recent New York Association of Mortgage Brokers convention in Saratoga Springs, N.Y. At the same meeting, Robert M. Jaworski of the law firm of Reed Smith Shaw & McClay added this is a very troublesome case that is made more so by being the second in a row to receive class certification. E. Robert Levy, executive director of the Mortgage Bankers Association of New Jersey/League of Mortgage Lenders, said what makes this different from the Culpepper and Mulligan cases is that it has been established that this payment was for services rendered.