The PennyMac Loan Services class action settlement resolves a longstanding lawsuit that asserts PennyMac force-placed excessive insurance policies issued by QBE Specialty Insurance Company, Praetorian Insurance Company, QBE First Insurance Agency, and Balboa Insurance Company. The issuance of excessive insurance occurred whenever a policyholder’s policy expired or if the policyholder failed to purchase an acceptable level of property insurance coverage.
The law does not prohibit force-placed insurance policies to ensure adequate property insurance coverage. However, the legal term “excessive” is what applies in this class action lawsuit. Primary plaintiffs allege that PennyMac force-placed insurance to receive kickbacks from the participating insurance companies listed in the class action lawsuit. The plaintiffs also maintain that PennyMac charged excessive monthly premiums on the force-placed insurance policies. PennyMac and the rest of the defendants vigorously deny violating force-placed insurance laws. However, every defendant in the case has decided to a class action settlement to avoid costly prolonged litigation. A judge granted preliminary approval to the class action settlement on October 18, 2016.
What You Need To Know
According to court documents “Class Members of the PennyMac force-placed insurance settlement include all borrowers in the United States who, between Feb. 1, 2011 and Oct. 18, 2016, were charged by PennyMac under a hazard, flood or wind lender-placed insurance policy issued or procured by any of the QBE Defendants for a residential property and who either paid PennyMac the net premium for that force-placed insurance policy or who did not pay to and still owe PennyMac the net premium for the policy.”
The potential class action settlement award varies depending on whether you receive a cash amount equal to 5.5% or 10.5% of the net premium charged to your forced-place insurance policy account between February 1, 2011 and October 18, 2016. On the class action settlement claim form, you might have to provide information that verifies your claim, such as the signature of a witness or a copy of your PennyMac mortgage statement. Make sure to follow all of the directions on the claim form to expedite approval of your claim.
Eligible class members have until July 13, 2017 to submit a valid claim form. The final hearing for the class action settlement called Cooper v. PennyMac Loan Services LLC, et al., Case No. 1:16-cv-20413-JEM, in the U.S. District Court for the Southern District of Florida was held on April 14, 2017. To learn more about the PennyMac class action settlement, visit the website www.CooperSettlementInfo.com. Adam M. Moscowitz, Aaron S. Podhurst, Lance A. Harke handle the class counsel duties for the plaintiffs. PennyMac has retained Marc J. Gottlieb as defense counsel.
