Lender Fraud

12/12/2013

Force-Placed Insurance Lawsuits Challenge Widespread Lender Practices

Force-Placed Flood Insurance Lawsuits

Major mortgage lenders are being sued for forcing homeowners into overpriced homeowners and hazard insurance when the borrowers own policies have lapsed.  JP Morgan recently settled a force-placed insurance lawsuit for $300 million. Force-Placed Insurance Overview What is force-placed insurance? Force-placed insurance is hazard insurance a mortgage servicer obtains on behalf of a borrower.  Essentially, when a borrower’s insurance policy lapses, whether due non-payment, simple error or otherwise, the mortgage lender will “force-place” a new policy on the property in order to protect... Read More