Bank of America and Chase should worry. This is bad. And I guess this law firm paid attention to OperationLeakS' information from a whistleblower and former Balboa Insurance employee about BofA force-placed insurance scam. Keep in mind that Keller Rohrback has always filed a class action lawsuit against Chase and other banks for bank abuses and illegal practices in homeowners that seeked HAMP loan modification and other loan modifications.
From the law firm website:
Attorney Advertising. Keller Rohrback L.L.P. (www.krclassaction.com) is currently investigating Bank of America Corp. (NYSE: BAC) and BAC Home Loans Servicing, LP, as well as JPMorgan Chase & Co. (NYSE: JPM) and Chase Home Finance LLC regarding alleged abuses related to force-placed insurance. Force-placed insurance (also known as lender-placed insurance) is hazard or homeowner’s insurance taken out by the bank, lender, or mortgage loan servicer on behalf of the borrower to cover the mortgaged property. This type of insurance is generally taken out by the mortgage servicer when the insurance coverage selected by the borrower lapses in coverage. A lapse in coverage can occur for a variety of reasons, including the failure of mortgage servicers to pay for homeowner’s insurance out of escrow funds. This inaction can result in the servicer imposing whatever insurance it wants and the new insurance can cost the homeowner up to 10 times (or more) the cost of the prior insurance. The increased cost also adds to the homeowner’s debt obligation and can result in increased monthly payments. For homeowners that are already struggling with their mortgage payments, this practice can be the final straw and lead to foreclosure. Mortgagors who pay their own hazard or homeowner’s insurance directly can also be subject to force-placed insurance if they get behind on their insurance payments and the coverage lapses, triggering the servicer’s imposition of force-placed insurance on the property.
Keller Rohrback’s investigation focuses on alleged abuses by Bank of America and JPMorgan Chase, among others, such as: failing to pay for hazard insurance out of the borrower’s escrow funds, charging homeowners for unnecessary insurance, backdating policies providing coverage retroactively, utilizing their own subsidiaries to provide the hazard insurance, and purchasing policies from companies who share fees or profits with the servicers—often without disclosing this information to the borrower. Keller Rohrback is also investigating the force-placed insurance practices of the following mortgage loan servicers:
Aurora Loan Services IndyMac Mortgage Services
Downey Savings & Loan Litton Loan Servicing LP
EMC Mortgage Corp. Nationstar Mortgage LLC
Financial Freedom PennyMac
GMAC Mortgage, Inc. Saxon
HSBC SunTrust Mortgage, Inc.
If you were subjected to force-placed insurance by Bank of America, JPMorgan Chase, or any of the above-listed servicers, or your house was sold in a foreclosure sale after you paid for force-placed insurance, or you have information about these servicers’ force-placed insurance practices, please contact paralegal Nick Wallace or attorneys Gretchen Obrist or Lynn Sarko at 800.776.6044 or via email at info@kellerrohrback.com.
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