Sketchy force-placed insurance cause HSBC to have to pay homeowners back

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State Farm insurance company sues A...
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Property owners in Massachusetts who were sold this coverage through dubious practices will receive $2.7 million. HSBC, a national mortgage lender and servicer, has now agreed to pay a total of $4 million as a result of its force-placed insurance practices, according to Massachusetts Attorney General Maura Healey. This payment was the outcome of a settlement in a case in which HSBC was accused of inappropriate practices. These practices related directly to its sale and management of force-placed insurance. It involved allegations that HSBC had been receiving various forms of…

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Federal agency is slow to act on controversial homeowners insurance coverage

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Federal Housing Finance Agency has not taken action on force-placed insurance The Federal Housing Finance Agency has pledged to make changes to a controversial type of homeowners insurance coverage, but has yet to actually take any action on the matter. The agency’s director told the Senate Banking Committee this week that the agency was making progress in addressing the issue of force-placed insurance, but none of the agency’s plans have gone into effect yet. Force-placed insurance has become a controversial topic in the U.S., with many consumers and state officials…

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Homeowners insurance settlement of $300 million to be paid by Chase

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Allegations over the force placed policies and the practices surrounding them have led to the payout. A federal judge recently signed off on a JPMorgan Chase settlement that will have the lender paying out a minimum of $300,000 to approximately 750,000 mortgage customers who had expensive homeowners insurance forced upon them. Force placed insurance is commonly applied to mortgage borrowers who let their coverage lapse, breaching their contract. When the required homeowners insurance is allowed to lapse by the mortgage borrower, or if they simply stop paying it, the lender…

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Force placed insurance lawsuit causes Citi to pay $110 million

Force placed insurance

Citigroup Inc. has agreed to pay the money to thousands of homeowners who had been overcharged. According to recent news, Citigroup Inc. has now agreed to a payout of $110 million to thousands of homeowners who had force placed insurance applied to them when the allowed their own coverage to lapse or they stopped making payments. The forcibly charged property coverage came with highly expensive premiums, said a court filing. This trend of force placed insurance lawsuits has been spreading across the United States, as many American insurers and banks…

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Force placed insurance regulations to be altered in the United States

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The FHFA now intends to ban mortgage lenders from being able to receive payments. The Federal Housing Finance Agency (FHFA) is now working to ban mortgage companies from being able to receive lucrative payments in order to arrange for forced placed insurance on behalf of homeowners in certain situations, such as when an existing policy has been allowed to lapse or has gone unpaid, against the agreement of the loan. The U.S. housing regulator is working to stop this controversial payments practice from continuing. Government officials have revealed that force…

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Force placed insurance rules on their way to New York

forced placed insurance homeowners

The state intends to implement some sizable and widespread regulations to this practice. Officials from New York have just proposed a new comprehensive list of rules in order to reform the practices of force placed insurance (also known as lender placed or creditor placed), for the industry within that state. These regulations are meant to help to make sure that the procedures will be kept free of abuse. This Department of Financial Services (DFS) in New York has stated that the regulations for force placed insurance are being designed in…

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Force placed insurance settlement reached by Assurant and J.P. Morgan Chase

Force placed insurance

The agreement that has been reached will require a payment of a total of $300 million to resolve the allegations. Assurant Inc. and J.P. Morgan Chase have now agreed to a settlement in a class action suit against them that will cause them to pay $300 million in order to resolve the allegations against them regarding force placed insurance selling. The claims against the companies had to do with a special type of homeowners coverage applied on behalf of the policyholders. The settlement that has been proposed is among the…

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