A small set of putative class actions filed in 2007 alleged that a lender’s captive mortgage reinsurance violated RESPA because the reinsurance arrangement was a sham. Plaintiffs alleged that no actual reinsurance existed where no actual claims have been paid. Now that losses to captive reinsurers are catastrophic, federal courts are itching to clear their loaded case dockets of these actions (read: silver lining for reinsurance losses). Plaintiffs’ lawyers are scrambling for new theories of liability.