Force-Placed Insurance

03/31/2014

Force-Placed Insurance Lawsuit Brought Against Bank of America

Force Placed Insurance Lawsuit Brought Against Bank of America

On March 28, 2014 Bank of America was hit with another class action on behalf of a nationwide group of borrowers who were subject to the bank’s force-placed insurance policies. The force-placed insurance lawsuit, filed in Federal Court in the Northern District of California alleges that Bank of America force-placed flood insurance policies on a San Jose, California woman's home, creating unnecessary and unwarranted coverage. In accordance with the terms of her mortgage and federal law, the plaintiff was forced... Read More
03/26/2014

Force-Placed Homeowners Insurance Update: New Rules Applicable to Mortgage Servicers

Force-Placed Insurance

New mortgage servicer rules were enacted by the Consumer Financial Protection Bureau (CFPB), effective January 1, 2014. The new rules amend Regulations X and Z, under the Real Estate Settlement Procedures Act and Truth in Lending Act, respectively, and create new requirements which must be followed before a mortgage servicer can legally force-place an insurance policy. Force-placed insurance was one of the highest profit margin activities of mortgage services in past years with lenders jumping to replace a homeowners $1,500 policy... Read More
03/05/2014

Force-Placed Insurance Settlement Against JPMorgan Approved

Force Placed Insurance Lawsuits

A federal judge in Miami has approved settlement of a class-action lawsuit against JPMorgan Chase for its force-placed insurance practices. The settlement provides class members with a 12.5% refund of the forced-place insurance premiums charged by Chase and Assurant, Inc.. While the settlement originally received the court’s preliminary approval back in October 2013, some homeowners objected to its terms.  In particular, homeowners argued that the claim form requirement under the settlement agreement was unfair because Chase retained the unilateral power to... Read More
01/30/2014

Homeowners Reject JP Morgan Settlement in Force-Placed Insurance Lawsuit

Several homeowners involved in the class-action lawsuit against JP Morgan Chase and Assurant Inc. over force-placed mortgage insurance policies have objected to the proposed $300M settlement on grounds that the settlement is unfair. JPMorgan Chase and Assurant Inc. previously agreed to a $300 million settlement to resolve the class-action lawsuit brought by millions of homeowners who claimed they were unfairly overcharged for “force-placed” mortgage insurance.  Chase apparently made nearly $600 million in additional profits by earning questionable “commissions” on the policies... Read More
01/23/2014

Force-Placed Insurance Plaintiff Denied National Class Action Standing

A federal court in Pennsylvania has ruled that an Ohio-homeowner could not bring a national class action lawsuit over force-placed insurance in Pennsylvania. Plaintiff Xi Chen Lauren brought suit against an Assurant Inc. subsidiary for working with PNC Bank to force homeowners into unwanted and unnecessary homeowners insurance.  Lauren accused PNC Bank and the Assurance subsidiary of colluding to unjustly enrich themselves at the expense of borrowers by receiving “kickback”-style commissions on the insurance that was force-placed on borrowers as well... Read More