Mims v. Stewart Title Guaranty Co.

ORDER

DAVID C. GODBEY, District Judge.

This Order addresses Defendant Stewart Title Guaranty Company’s (“Stewart”) motion to dismiss [6] Plaintiffs John Mims, Lucy Mims, and Helen Cotton Ragland’s complaint for failure to state a claim. For the reasons explained below, the Court denies Stewart’s motion. 1

I. Allegations of Illegal Overcharges and Fee Splitting

In Texas, lenders of mortgage loans require borrowers to purchase title insurance as a condition of making a residential mortgage loan. See Plaintiffs’ Second Amended Complaint at ¶ 6. It insures the lender against certain defects in title…