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LAWSUITS NEWS & LEGAL INFORMATION

Force-Placed Insurance Class-Action Settlement Approved at $140 Million

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Miami, FLA settlement deal reached in April between defendants in a Lender Insurance lawsuit and homeowners over Force-Place Insurance premiums that were allegedly inflated was formally approved by a federal judge in Florida September 14. The final bill for defendants Ocwen Financial Corp. and Assurant Inc. will be $140 million.

Lenders insurance is a product brought into play when homeowners fail to provide insurance on real property to which a mortgage is registered. On other occasions a policy is allowed to lapse or in the mortgage holder’s view, there is insufficient insurance to cover the asset in the event of a catastrophic loss. In such a situation, a mortgage holder has the authority to force-place insurance coverage in order to protect the mortgaged asset.

The problem, as many homeowners and plaintiffs in Force-Placed Insurance lawsuits can attest, is that lender insurance is often more expensive, with less coverage than standard policies. In many cases, premiums have been found to be wildly inflated.

According to court documents, the defendants admitted that rates for lenders insurance would be higher than those of more traditional policies - but failed to tell homeowners those premiums would not only be up to ten times more expensive, but that the bank would profit from those admittedly inflated premiums.

The Force-placed insurance lawsuit alleged that Assurant, as the insurer, paid Ocwen to inflate the premiums. Several Force-Placed Insurance Lawsuits have alleged the existence of “cozy” relationships between banks and insurance companies as a means to inflate profits on the backs of unsuspecting homeowners. Various states have been cracking down on such force-placed insurance terms, with Attorneys General vowing to eradicate the unfair practice.

The forced-placed insurance class-action settlement, approved through a 70-page decision penned by US Magistrate Judge Jonathon Goodman just days ago, provides compensation to some 400,000 class members who will share in the $140 million settlement. Goodman, in his decision, noted the fairness of the settlement.

“Unlike some consumer class settlements, this is not a low-dollar value or ‘coupon’ settlement,” he wrote. “In many instances, perhaps most, the claim settlement relief will be worth hundreds of dollars to the average Claimant.”

The Force-placed insurance lawsuit is Lee v. Ocwen Loan Servicing LLC et al., Case No. 0:14-cv-60649, in the US District Court for the Southern District of Florida.

READ ABOUT FORCE-PLACE INSURANCE LAWSUITS

Force-Place Insurance Legal Help

If you or a loved one have suffered losses in this case, please click the link below and your complaint will be sent to an insurance lawyer who may evaluate your Force-Place Insurance claim at no cost or obligation.

READER COMMENTS

Posted by

on
Check were mailed out in August 2017 per ISIS at 305-372-1800 ext 900. My case cannot be found all of a sudden. The only way I can prove that ive mailed out the form before the dead line is to have proof of me mailing it. Really who has proof of mailing something you drop off in the mail box? Thy are full of it. I want my money!!

Posted by

on
I just spoke with someone a week ago and they told me tha the updated information for this settlement can be found: leesettlementinfo.com
I also asked, about my settlement distribution and was told to contact the law firm(s) listed on my settlement document.
I'd like to know has anyone received a check, Yet???

I called today and was told that they were looking for the claims to be reviewed by the end of 2016. However, at this time no additional information is available but to call and check back periodically.

If my claim is approved, I will receive a check. We currently anticipate payments to be made by June 2017. It was April but we are waiting on the bank. I have been calling this number for the past 6 months on and off. 1-305-728-2907
I bet when I call again next month it will be pushed back further this year. This is a BUNCH OF BULL CRAP!!!! WTF?

Posted by

on
Just another scam, while they use our money to make more money

Posted by

on
When will checks be mailed out

Posted by

on
just spoke with someone at the 1-305-728-2907 number and they told me it would likely be another year till it was settled and claims reviewed. WTF?

Posted by

on
I've left 3 messages on the voicemail over the past few months and no one has replied and there is yet to be an update on the website main page....frustrating

There was a previous post on this site in August (se Millia Martinez) that state she had been emailing with a them. Wish she would have provided the email address so we could all flood them with requests for an update.

Posted by

on
Just called all 3 Atty Firms associated w/ this settlement case. I spoke with receptionist at this # (Atty Moskowitz-Atty for claimants in this case) She transferred me twice to ext 900, to speak to a rep in their claim center payout dept, but no one ever answered the phone. Was given this # also to call for info-1-305-728-2907. Was told by Atty Podhurst's office that there should be representatives at the above # to speak with; only got automated voicemail. Both the above #'s for speaking with somone had voicemails, and suggest you leave contact info and somone will contact you. The initial filing of this CA suit was 3/14/2014. If anone has any more substantuated updates I'd appreciate seeing it here

Posted by

on
Any update on this case?

Posted by

on
I emailed with a representative and they said the following....

"We expect the majority of claims to be reviewed within 180 days of the May 2, 2016 claim form deadline. At this time, your claim is in review. While no additional information is available at this time, feel free to check back with us periodically. If your claim is approved, we will mail you a check. We currently anticipate payments to be made in late 2016."

Posted by

on
Anyone receive a payment?

Posted by

on
Any word on payouts? submitted paper months ago no response.

Posted by

on
I am trying to get the latest info on the ocwen ins settlement. It would be nice if the law firm would send out some updated info regarding the status of this settlement. I would like to receive my check.

Posted by

on
I recently wrote a letter to this lawfirm about a month ago. I have not received a response to date. The website clearly states the 140 million was approved and we could expect payment within 180 days? We all need to write to the Bar Assn on this law firm because a formal investigation is needed!

You can go to the state directort where the law firm is located and file a Consumer Protection complaint with the Attorney General Office as well! Rwmember the more complaints the more fire will be put under their feet!

Posted by

on
WOW, WELL WHAT HAPPENED WITH THE SO CALLED FINAL APPROVAL, SEPT 2015?? SOMETHING SOUNDS FISHY!!

Posted by

on
I spoke with an attorney that represents the class action suit for Ocwen. Was told this settlement was appealed and could take till end of year. Also was told that if we did not send the class action suit application certified mail, theres a good chance that it was not scanned into the system as received.
Perhaps another SCAM OCWEN!!!!

Posted by

on
No, Haven't received any check yet and have left several messages for the Lee settlement.
Lets keep up the posts on here if anyone does receive a check.

Posted by

on
Has anyone received a check, Yet???

Posted by

on
I was wondering the same question as all of you, and couldn't find an update. I can't believe this is dragging out for so long!

Is there anyone else involved in the misdated letters lawsuit as well, and if so, any status on that?

Posted by

on
Just thought that I would pass al9by some information that I was able to get today.
The Case listed above is in Appeals ~
Not to be completed until early 2017.

Posted by

on
The information for this settlement can be found here: https://leesettlementinfo.com/
If you have questions about settlement distributions, you need to contact the law firm(s) listed on the settlement documents.

Posted by

on
Can you please answer our questions ?
Please.

Posted by

on
Do we have any idea when they will be mailing the checks?

Posted by

on
Can someone please answer our questions please ?

Posted by

on
Please tell use when the checks will be issued

Posted by

on
I have been leaving messages to see when the payments will be mailed out. Owen charged me $16k twice for a townhouse & I almost lost my home because of them. They stayed that my monthly payment went up to $3000 for a townhome they charged me for the entire building. Everyone at Ocwen kept giving me the run around.

Posted by

on
When will checks be mailed out

Posted by

on
When will the checks be disbursed to claimants?

Posted by

on
When will ckecks be mailed. Y aren't comments answered is this gonna happen

Posted by

on
When will checks be mailed

Posted by

on
when will they start mailing the checks

Posted by

on
I had my taxes and my insurance paid in my loan and ocwen did not pay the ins. after talking with ocwen and the ins.i found that ocwen was at fault and I had to find and different way to refince

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