Gibson v. First Federal Savings and Loan Association

MEMORANDUM OPINION

FEIKENS, District Judge.

Plaintiffs are homeowners who have mortgages thereon with the defendant, First Federal Savings and Loan Association (hereinafter referred to as First Federal). These mortgages are insured by the Federal Housing Authority. Pursuant to the mortgage instruments, plaintiffs pay to defendant a monthly escrow amount for taxes and insurance premiums.

As to the escrow funds, plaintiffs claim that First Federal is in violation of federal regulations and the common law in two general respects: 1 **(1) First Federal commingles the escrow funds it receives from…