STORY FROM: Reinsurance & Arbitration
Fla. Federal Judge Approves $76 Million Settlement of Lender-Placed Insurance Actions
November 10, 2015
MIAMI — A Florida federal magistrate judge has approved a class action settlement that resolves three actions accusing Nationstar Mortgage LLC of inflating amounts charged to borrowers for lender-placed insurance and of entering into riskless reinsurance agreements that generated kickbacks to the mortgage lender.
On Nov. 9, Magistrate Judge Jonathan Goodman of the U.S. District Court for the Southern District of Florida found the $76 million settlement “is superior to the other available methods for the fair and efficient adjudication of the controversy.”
Homeowners are required by the terms of their mortgage contracts to maintain insurance coverage on the properties ...