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 they force-placed onto their borrowers. The $300M settlement requires JP Morgan Chase and Assurant to refund or credit borrowers for 12.5% of the net premium for each policy covered in the settlement.
However, as reported by Law360, several class-members filed an objection in the Southern District of Florida arguing that the settlement is “not the product of ‘informed negotiations’.” The objectors dispute the requirement that they submit claims forms, while allowing defendants to unilaterally reject the claims without notifying class members or allowing them to cure alleged claim form defects.
Furthermore, the objecting class members argued that claims forms are unnecessary as Chase can easily determine the amount borrowers paid each year for the force-placed insurance and simply credit them with the 12.5% refund owed (as has been the procedure in other force-placed class action suits). The objectors say the claim form requirement is simply a ploy by Chase to deny claims, thereby escaping liability and paying out only a “fraction of their illicit force-placed insurance profits.”
Force-placed insurance has been the subject of litigation across the country. Force-placed insurance is notoriously more expensive than what homeowners can purchase on their own, typically because those premiums are artificially inflated by commissions banks and re-insurance companies allegedly earned back on the same policies.
How Do I Get More Information?
If you believe your mortgage lender unfairly forced you into purchasing hazard insurance for your property, contact the attorneys at Audet and Partners, LLP to determine if you are eligible for compensation. Call us at (800) 965-1461 or visit our webpage at http://audetlaw.com/investigations/force-placed-flood-insurance-lawsuits/.