force placed home insurance Archives

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

March 7, 2014March 4, 2014 G. Turner

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…

CFPB considers new rules for fair force placed insurance

April 11, 2012April 30, 2013

Forced placed insurance gets the squeeze. The Consumer Financial Protection Bureau (CFPB), the country’s consumer watchdog agency, has put forward newly proposed rules for mortgage servicers which would require them to provide borrowers with better disclosure of fees, force placed insurance, and interest rates. According to the director of this newly formed organization, Richard Cordray, “The mortgage servicing rules we are considering reflect two basic, common-sense principles – no surprises and no runarounds.” The CFPB provided the proposal details, in a statement which included information about a measure that would…