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Is Florida a Haven for Forced-Place Insurance?

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Tallahassee, FLAs the nation’s homeowners grapple with the unfairness that is forced-place insurance, it becomes apparent that the state of Florida appears to have the greatest incidence of Force Place Insurance, according to Targeted News Service (5/13/13).

Of all Forced-Place Insurance (FPI) policies in place across the entire country, Florida remains the “epicenter” of FPI in the US with 35 percent of the countrywide FPI premium residing in the state alone. Those are huge numbers, akin to the high cost for an insurance product that offers the consumer less protection than a standard policy, but with higher rates.

A hearing called in May by the Florida Insurance Commissioner was designed to solicit public comment on the issue and - specifically - a rate filing by American Security Insurance Company (ASIC), part of the Assurant Group. ASIC, which is reported as writing almost 70 percent of the Forced-Place Insurance premium across the entire state, proposed no change in its rate structure.

“[Forced-Place Insurance] rates are inflated by reverse competition,” said J. Robert Hunter, Director of Insurance for CFA, former Texas Insurance Commissioner and a consulting actuary. “FPI insurers compete for business by larding premiums with expenses to provide kickbacks to mortgage servicers. The mortgage servicer passes the cost of the FPI on to borrowers, but takes a big piece of the premium in cash or subsidized services. The outrageous ASIC filing shows the results of reverse competition - massively excessive rates.”

The mortgage and housing crisis of 2008 saw a massive growth in the Force-Place Insurance industry. Mortgage holders found to have allowed their home insurance to lapse were forced into policies by mortgage holders in an effort to protect the lender’s investment. However, according to the source, an FPI policy typically comes at a rate two or three times that of a standard policy, while providing no coverage for contents and household effects, liability or additional living expenses.

In some cases, FPI insurers have put force-place insurance policies on homes that already had insurance - without the homeowner’s knowledge or consent. The increased cost pushed many a struggling homeowner to the brink of foreclosure.

Many a Force-Placed insurance lawsuit has alleged similar wrongdoing, and banks have been pushed into settlement agreements after they were found to be vending gutted policies at substantially higher premiums, while enjoying kickbacks and other perks from insurance companies who came to play in the FPI sandbox.

What’s more, the monitor of a $25 billion national mortgage settlement brought in last year gave five servicers passing grades for compliance in spite of some banks and other institutions dropping the ball.

For example, JPMorgan Chase was identified as dragging its heels on its commitment under the terms of the settlement to cancel Forced-Place Insurance policies within 15 days of receiving proof that a borrower carries adequate insurance on his own.

In many cases this didn’t happen. Overall, settlement monitor Joseph A. Smith was swamped with nearly 60,000 complaints from consumers with regard to delays in the workings of the settlement.

“Servicers have additional work to do both in their efforts to fully comply with the national mortgage settlement and to regain their customers’ trust,” said Smith, a former North Carolina banking commissioner who now heads the Office of Mortgage Settlement Oversight. “The settlement is having the intended effect of uncovering problems with servicer performance.”

For its part, JPMorgan Chase self-identified a host of problems and voluntarily refunded premiums to some 2,000 borrowers on its books.

Meanwhile, angst in the state of Florida over Forced-Place Insurance premiums continues. “The proposed rates are a sham - ASIC has filed a rate request 25 percent higher than they actually want so they can ‘settle’ for the 20 percent rate cut they were ready to accept all along,” said Birny Birnbaum, executive director of the Center for Economic Justice and a national expert on FPI. “Consumers in Florida and around the country desperately need the Insurance Commissioner to get it right with FPI rates. Anything less than a rate cut of 50 percent will be unfair to consumers and a victory for Assurant.”

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READER COMMENTS

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Without predjuice,

Robert L. Tatge

Note: If this was done to me, it was done to many, Fifth Third Bank needs to be

in on the: FORECLOSURE SETTELEMENT.

Following needs your concern:


3/28/2012/ up-dated 4/23/2012, 4/26/2012, 5/14/2012


Fifth Third Bank
Kevin T. Kabat, President & CEO Fax 513-358-3493 Madisonville Operations Center
MD1MOC2N
Cincinnati, OH. 45263

Dear President Mr. Kabat:

RE: Mortgage Loan: 404876203 Three situations, (presented on 3/28/2012,) occurred during the Foreclosure process that I believe were important, illegal and unfairly place on me, therefore to consider this Foreclosure invalid.

* Forced Placed Hazard Insurances, $500.00 per month. Inception June 10, 2008. Just months from refinancing loan from Country-wide Home Loans Exhibit” A”, (9 -Pages)

* Mortgage Broker manipulation of appraisal, loan application with Fifth Third Bank, and my credit. Exhibit "B,” (8 - Pages)

* The “Forbearance Plan” offered: The due dates (2020) were set-up all wrong. Exhibit "C", (1 – Pages)

* Failing to timely and accurately apply payments made by borrower and failing to maintain accurate account statements. (This addendum added 4/23/2012.) Fifth Third Bank failed to apply payment correctly so not to appear, (back dated to July 2010) on Form 1098 Mortgage Interest Statement in year 2011, amount $510.00. COUNTRYWIDE, in July 2003failed to record $606.12 Borrower has no records of a record from them. Exhibit "C-A", (5– Pages)

* Conflicting and imbeciles’ amount stated on the Foreclosure Notices. Exhibit "D-E",
(8-Pages)



Origination Misconduct - Unfair and Deceptive Origination Practices (This addendum added 04/26/2012) * In the course of their origination the mortgage loan this Bank has engaged in a pattern of unfair and deceptive practice. Among other consequences, this practice caused borrows to enter into an unaffordable mortgage loan that led to foreclosure.

* Financial Injury or Other Remediation. The charge change because of the FORCE PLACED HAZARD INSURANCE placed on Borrower. (Payment Book graduated July 01, 2008 $2397.00, Nov 01, 2008 $2551.75, to Dec 01, 2008 $2841.25, effect had to cash in 401 K-plan, retirement. Exhibit "F”, (1-Page)



Forced to Cash in 401-k plan to make graduated payments, because of the FORCE PLACED HAZARD INSURANCE placed on Borrower. Tax forms and amount Federal $2,192.61. Form 1099-R, 2008 Agriliance Savings Builder 401(K) Plan: total distribution $15,436.91 Exhibit "G”, (1-page)

COUNRTYWIDE HOME LOANS, March 2003 purchased Forced Placed Hazard Insurances, on Borrower and they had paid for this Insurance from Escrow and charged $855.00 premium March 2, 2003 Policy #N-0200487, stated “ there was a lapse in your insurance coverage”, I contact my Insurance, and they stated I had uninterrupted insurance since the purchase of the property in June 12, 2002 Exhibit "H:”(7-Pages)

Forced to Cash in 401-k plan to make graduated payments, Tax forms and amounts. Form 1099-R, 2002 CO-OP 401(K)n Plan: total distribution $11,002.50 Exhibit "I:” (1-PAGE)



Dear Review Board, I'm writing this letter to explain to you some of the discrepancy during the Foreclosure process that I had to go through. There are several, not being a lawyer that I found and I’m in the belief that there are many more that really brought the Foreclosure to a head. The one that actually broke my back was the Forced Placed Hazard Insurances, $500.00 more a month when I was living on pay-check to pay-check. The additional charge forced me to cash in stock and my 401K retirement plan, paying the extra taxes that went along with the process. After paying many months with the addition charges, I started to lose ground. Until recently I knew, I had insurance since the original mortgage with Country-wide Home Loans, and it was required for the loan with Fifth Third Bank. Just lately, I was with my Lawyer, we called, Pioneer Heritage Insurance, PO Box 716, Spicer, MN. 56288, phone# (320) 796-2169. Gentlemen, they stated I had continued and uninterrupted insurance on the property and they fax over the proof:



Exhibit” A”. The reason this was wrong, was that I had insurance and Fifth Third Bank paid for it out of my Escrow every year since origination of the Home Loan Mortgage, Fifth Third Bank approved for me.

My original home mortgage loan made by FIFTH THIRD BANK was signed by me, Robert L. Tatge (a single person) on January 4, 2008 for $310,000.00 @ 6.375% for 30years, (on July 1, 2008 they FORCE PLACED HAZARD INSURANCE on the borrower) on a refinanced loan made prior with COUNTRY-WIDE HOME LOANS back on JUNE 12, 2002, for $178,817.91 @ 7% for 30 years.

The NEXT problem that throws up a red flag is the mortgage broker that put the loan application together for our approvals. I’m not sure of his name, and you probably could help me out with that. He said, He could improve my credit, and I could take cash out, that was very cheap money, because of the high equity I had in my home. This was highly suspicious, not taking into consideration my age or ability to pay the extra money back. Now that I look back, he found and new ways to derive benefit by manipulation. My home was built year 1975: (The TRUTH 1900). Appraisal manipulation, to my understanding this broker wasn't satisfied with the first appraisal from: Forsythe Appraisals, LLC, 54 28th avenue North, St. Cloud, MN. 56303 Phone 320-259-8958 He asked the appraiser to treat the property like it was on Lake Minnetonka, so the second time it came in at $420,000. It satisfied the loan guidelines. Then he sent me two checks, one he asked if I would destroy, I did, the other I cashed:
Exhibit "B,” (He said, he had other companies,) that’s why the check was drawn on: MJC ENTERPRISES LLC, 5115 EXCELSIOR BLVD., SUITE 422, SAINT LOUIS PARK, MN 55416
This was unfair because my property tax statements for years 2007 through 2009 stated: MARKET VALUE ESTIMATED $324,700 IN 2007/2008 which is $95,300 less than appraisal. The second property tax statement for years 2008/2009 which is $92,000 less than appraisal.

Origination Misconduct (This addendum added 04/26/2012) Unfair and Deceptive Origination Practices * In the course of their origination the mortgage loan this Bank has engaged in a pattern of unfair and deceptive practice. Among other consequences, this practice caused borrows to enter into an unaffordable mortgage loan that led to foreclosure.

Exhibit "B, 1” Appraisal done by, Becky Lyn Storms, of Forsythe Appraisals, LLC, 222 E. Little Canada Road, Ste 175, St. Paul, MN 55117 , was rejected by Broker and my money was refunded, leaving me to think I had no Appraisal on my property. (Lender: TSI/QUICKEN LOANS) Invoice# 70601499, Invoice Date: 12/10/2007, File#70601499, TSI-112907-0126-1 Appraisal is 20 pages, included within is proof on page 3 OPINION OF SITE, VALUE by Cost approach…=$423200.00 Than page 10 of the same, states Date 12/10/2007 and APPRAISAL FEE: $325.00 Full copy of Appraisal is available on request.

Exhibit "B, 2” Appraisal done by, Paul J. Loven, of Infinite Appraisal Service, 19475 109th Street, Big Lake, MN 55309 (www.state.mn.us/mn/.../Appraiser_Enforcement_Actions_02141111...You +1'd this publicly. http://www.google.com/Allege Resp established a predetermined value on appraisals; on numerous occasions, Against: Appraiser, Location: ST PAUL, MN ... Against: Appraiser, Location: PRIOR LAKE, MN..... Allege respondent rendered appraisal services in a careless or negligent manner by.... Against: Appraiser, Location: BIG LAKE, MN)

I did not knowingly pay for this service and wonder who did, so I try to call Infinite Appraisal Service, and the number 763-263-3335 is no longer in service. According to the Appraisal done by them the APPRAISED VALUE OF SUBJECT PROPERTY $448,000.00, LENDER/ CLINT … Quicken Loans, 20555 Victor Parkway, Livonia, mi 48152, File # 071106-1, TSI- 110607-0448-8 . This is probably the Appraisal FIFTH THIRD BANK has on file: almost the same date 11/11/2007 but the second appraisal came in $24,800.00 more.

Exhibit "B, 3” Letter, dated 01/27/2012 from Office of the President, Paul-Allen Bixler, states (“the Bank did not have two appraisals used to review of the property”).

I ask for a modification JUNE, 2009 and was denied because of insufficient income; I keep up my requests and hired a lawyer, Avi Liss, Liss Law, LLC., Hereford Street, Boston, MA, 02115 (W) phone 617-778-0363 Finely brought me a modification on August 1, 2009 (lawyer said it was the Best he could do!) Loan Amount $327,410.93 @ 5.375% for 40 years, graduated principal by $17,410, lowered interest by 1%, making the pay off difference before the modification the principal was $310,000,00 interest $386,238.81 = $696,238.81... New Modified Mortgage 40 years, principal $327,410.93, interest $489,836.12 = $817,247,247.05... The difference of $121,008.24 it was Unaffordable, I signed it at the Lawyers suggestion. Beginning with the payment due 08/01/2009 monthly Including escrow were $2,135.51 Knowing this modification wasn't something I could afford , I asked for HELP, A FORBEARENCE PLAN was offered:

Exhibit "C,” The “Forbearance Plan” offered: The due dates were set-up all wrong.(1-page)

Exhibit-“C-A-1": * Failing to timely and accurately apply payments made by borrower and failing to maintain accurate account statements. (Question of recording of draft on Jan 12, 2011 of $510.00 and following tax Form 2011 form 1098 not show that record). Fifth Third Bank (Letter from F.E. Troncone, Senior vice. President) January 12, 2011, sent confirmation on “Notice to Debit Applied to Account “, $510.00 was authorized to be deducted from my checking account, applying to your Fifth Third account ending in 6203. Per Phone to 1-800-972-3030 I asked, if the Jan 12, 2011 withdrawal was recorded and where, the representative said, she “it was recorded back to July of 2010”. (1-PAGE)

“C-A-2” Print out from my Bank, Lake Region Bank on 4/23/2012, states this was completed, January 13, 2011 also a transactions for Dec 10, 2010 of $510.00 (1-PAGE)

“C-A-3” 2010 FORM 1098 MORTGAGE INTEREST STATEMENT, showing 2 entries of $510.00 (1-PAGE)

“C-A-4” Bank Money Order, 4215901403 from Lake Region Bank sent to Fifth Third Bank, 11/10/2010 for $510.00 Question on recording data? (1-PAGE) After finding that error, I found another Bank Money Order, 4918708457, dated July 5, 2003 made out to COUNTRYWIDE for $606.12 that I can’t find documentation on? (2-pages)



The MIXED-UP misrepresentation and wrongful doing , on all FORECLOSURE NOTICE'S sent out by the Lawyers representing Fifth Third BANK: Usset, Weingarden & Liebo, PLLP, 4500 PARK GLEN RD, #300, MINNEAPOLIS, MN 55416, PHONE 952-925-6888, Knowingly this is information sent to the lawyers from Fifth Third Bank, mislead the mortgagee, and probably the sale of the property at Sheriff’s Sale.
Exhibit "D,” Multiple & Conflicting Dollars amounts in Default on “Foreclosure notice” making it impossible for Mortgagee to understand what they meant and get help if needed. (3-pages)
#1: March 9, 2009 $12,880.19
#2: March 9, 2009 $15,276.19

Exhibit "E:” Multiple & Conflicting Dollars amounts in Default on “Foreclosure notice” making it impossible for Mortgagee to understand what they meant and get help if needed. (5-pages)
#1: March 22, 2011 Fifth Third Bank said I owed $2,365.80 to reinstate mortgage.
#2: March 22, 2011 Fifth Third Bank said I owed $3,874.40 to reinstate mortgage.
#3: March 22, 2011 Fifth Third Bank said I owed $35,100.90 to reinstate mortgage.

Exhibit "F:” Payment Book graduated July 01, 2008 $2397.00, Nov 01, 2008 $2551.75, to Dec 01, 2008 $2841.25, because of Forced Placed Insurance, effect had to cash in 401 K-plan, retirement. (1-page)

Exhibit "G:” Forced placed insurance caused me to Cash in 401-k plan to make graduated payments. Tax forms and amounts. Harming my future retirement funds. (1-page)

Exhibit "H:” Because I had found Fifth Third Bank in wrong doing in placing Forced Placed Insurance on my account, I searched and found Countrywide Home Loans had done the same thing to me prior: Document, Dated March 2, 2003, less than a year after I purchased the property in June of 2002. The Insurance Department said: The Insurance purchased by Countrywide on the property was canceled, but they charged a premium in the amount of $855.00 for a so called lap in coverage. My Insurance, I contacted and they said, they had proof of uninterrupted insurance since the purchase of the property. (7-pages)

Exhibit "I:” The cause of Force placed Insurance, Countrywide Home Loans was, I had to cash in a 401 (k) plan, totaling $11002.50 and pay a substantial tax of $2200.50 federal and state.
.
Exhibit "J:” I had a 3 Hernia Operation on August 5, 2011 @ the VA Hospital in Minneapolis, MN. I had to stay in the hospital until late December, because I was on a Vac healing machine that restricted my staying in the hospital and their rules. Outside contact was difficult. I still had a home health nurse that comes to my home every Wednesday until Mid-April. Fifth Third Bank knew of my operation and still proceeded with the foreclosure by having the sheriff’s Sale on Nov 16, 2011.

The information the broker collected was suspicious, wrong, and different, I realize now. Forced Hazard Insurance should have been follow-up at enforcement. And I just do not understand the lesser amounts to reinstate the mortgage, it was confusing on the Foreclosure Notices and made it impossible to redeem, also difficult to sell.

Discussion: When my dream home was foreclosed on, my heart was broken. I try my best with circumstances beyond my control. Lawyers were so expensive and I currently couldn’t afford one, and Legal Aid lawyers were the worst of all, because they found nothing wrong with the FORECLOSURE and suggest I find another place to live by late January 2012. I hope you would look into this matter. I still care for this home, and strongly want it back with punitive damages. I'm writing because the Office of the Comptroller of the Currency (OCC) recommends that I should attempt to resolve my complaint with FIFTH THIRD BANK first. I have sent letters explaining what I thought was wrongly process and they seem to find ways to get around the wrong doing or had it covered up. The second and final Eviction Hearing was on May3, 2012, I was Evicted with a SETTLEMENT AGREEMENT, vacate date June 7, 2012, and I had to sign a Waiver and Release, any and all my rights to appeal, I signed with my name and Without prejudice, The lawyers said, That was a deal breaker and said if I wanted more time to move out, I was to cross-out the Without prejudice, and initial. I did. Exhibit "K:” (8-PAGES)

After all my struggles to keep my home, the Mortgage Company has seem to prevail and the only ones that can HELP in my situation is the OCC, according to Bill Gosiger from the Office of Minnesota Attorney General, Lori Swanson, Honorable: Bill Gosiger, File: 439011, FAX 651.282.2155

I’m including a couple more documents I believe to be important. Also an Exiting Strategy that I offered Fifth Third Bank they totally ignored.



Mr. Robert L. Tatge 4/26/2012, up-dated 4/23/2012, 4/26/2012, Cc: Usset, Weingarden &Liebo, PLLP, Attn; Amy Van Zummeren @ FAX: 952-925-5879 Cc: Independent Foreclosure Review (OCC), (Letter) PO BOX 2587, Fairbault, MN 55021-9981 Attn: Paul-Allen Bixler, Regulatory Support Specialist Office of the President: Fax 513-358-3493
Cc: Office of Minnesota Attorney General, Lori Swanson, Honorable: Bill Gosiger, File: 439011, FAX 651.282.2155

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