The Key to Reducing Post-Refi Boom Borrower Churn

In this webinar, PRMG Chief Lending Officer Kevin Peranio will help attendees sort through the right technologies as he shares the tech investments that have had the biggest impact on his business.

RealTrending: eXp’s Glenn Sanford reveals what’s next for company

CEO of eXp World holdings addresses his critics about his agent referral program, where he is taking the company next and growth limiters for the brokerage.

Navigating Closing Struggles in 2021’s Purchase Market

Join this webinar to discover the most current information on hybrid and full eNote eClosings and discuss key criteria to successfully implementing your eClosing strategy.

Mortgage servicers take steps to support borrowers amid COVID

Call volumes have spiked to a level not seen since last April, lenders and servicers need to prepare for a significant increase in their workload as they help borrowers through difficult times.

Mortgage

Wells Fargo settles forced placement lawsuit for undisclosed amount

Will pay affected owners 11% of premiums

Wells Fargo (WFC) and two insurance companies agreed to repay homeowners in cash up to 11% of the premiums paid before March 24, 2012, in a settlement reached Thursday.

The class-action lawsuit filed in a Florida federal court arises from Wells Fargo “force placing” homeowners with two insurance companies – Assurant Inc. and QBE Insurance Group – when those homeowners failed to maintain property insurance.

Detailed terms of the amount of the settlement were not disclosed, though the agreement did say Wells Fargo and companies would be providing “significant monetary relief.”

“While we believe the lender-placed insurance purchased on behalf of these borrowers was issued in accordance with the terms of the mortgages and applicable laws, we have decided to settle these cases to avoid protracted litigation,” Tom Goyda, a spokesman for Wells Fargo, told HousingWire. “We continue to support our lender-placed insurance services, which provide continuous insurance protection for real property customers when their voluntary insurance lapses.”

“Forced placement” or “lender placed” insurance purchases are not an unusual mortgage servicer practice when the owner does not maintain insurance.

Conflicts arise when banks opt for expensive policies or when they allegedly get commissions from the insurers, though that may not be the case in this instance.

Last week this same judge that approved the settlement granted final approval to another forced placement involving JPMorgan Chase & Co. (JPM) and Assurant, totaling $300 million.

That judge, Federico Moreno, has also ordered an agreement be filed in a separate case against Bank of America (BAC).

In February, Citigroup and Assurant agreed in yet another forced placement suit to pay $110 million to homeowners.

Most Popular Articles

Millions will enter housing market in 2021: Zillow

Up to 2.5 million households could enter the housing market in 2021, per Zillow. The buyers will descend on the “secondary cities” across the U.S.

Apr 07, 2021 By

Latest Articles

Fannie Mae exec Andrew Peters leaves for Lenderworks

Andrew Peters, bound for mortgage vendor Lenderworks, becomes the latest Fannie Mae exec to leave the GSE in the last six months.

Apr 12, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please