Lender-Placed Insurance

Mortgage servicers and lenders have spent years fending off class-action lawsuits involving lender-placed insurance. A recent lawsuit introduced a novel twist to those cases: going after the force-placed insurer itself. Moving to dismiss, the insurer succeeded only in partially defeating the claims. Continue Reading Lender-Placed Insurer Dodges RESPA Allegations

I can’t recall any decision in which a judge openly compared his job to that of a tarot card reader, but a federal jurist in Florida recently did exactly that—in the context of a class action over lender-placed insurance (LPI). The prediction at hand was whether the regional appellate tribunal, the Eleventh Circuit Court of Appeals, would accept or reject the filed-rate doctrine as a defense to LPI lawsuits. Continue Reading Rulings on Lender-Placed Insurance Shift in Industry’s Favor

The most critical part of any class-action defense is often the narrative. That is because a judge who believes that consumers have been cheated will often permit a class action to go forward, even if the case is otherwise questionable. Nowhere is that tendency more evident than in the wave of lender-placed insurance (“LPI”) lawsuits currently sweeping the country. Continue Reading Companies Face Difficult Narrative with Lender-Placed Insurance