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Mortgage lender Nationstar Mortgage LLCย and insurance giant Assurant Inc. have agreed to a $54 million class action lawsuit settlement over allegations they entered into a force-placed insurance scheme thatย charged homeowners inflated premiums forย hazard, flood, flood-gap, or wind insurance coverage forced on their properties.
Force-placed insurance, also known as lender-placed insurance (โLPIโ), is insurance (hazard, flood, flood gap, or wind-only) that is placed on a homeownerโs property to protect the borrower and mortgage lender when the homeownerโs insurance policy lapses, or when the homeowner does not maintain a homeownerโs insurance policy that is acceptable to the mortgage lender.
When an LPI Policy is placed pursuant to the homeownerโs mortgage contract, Nationstar pay premiums to the LPI insurer who writes the policy, and then Nationstar charges the homeowners for those premiums.
The settlement will resolve the claims of approximately 380,000 borrowers who allegedly had mortgage loans with Nationstar and were overcharged for hazard, flood or wind coverage issued by Assurant Inc. or its subsidiaries between Jan. 1, 2008, and Jan 30, 2015.
The force placed insurance class action lawsuit (Braynen v. Nationstar Mortgage LLC)ย accuses Nationstar and Assurant of โcolluding with force-placed insurance providers to make lucrative profitsโย at the cost of unsuspectingย borrowers.
Plaintiffs allege that when a borrower was required to have insurance for his or her property pursuant to a residential mortgage or home equity loan or line of credit, and evidence of acceptable coverage was not provided (for example, when the insurance policy did not exist or had lapsed), Nationstar would place insurance in a manner such that the mortgage lender allegedly received an unauthorized benefit.
The Class Plaintiffs allege further that Nationstar did so in order to receive โkickbacksโ in the form of commissions from Assurant. Plaintiffs also allege that the way in which LPI policies were obtained and placed caused the rates and the amount of coverage to be excessive.
In addition toย the illegal kickback allegations, the Nationstar force-placed insurance class action lawsuit allegesย that the way in which Nationstarโs LPI policies were obtained and placed caused the rates and the amount of coverage to be excessive.
The Nationstar/Assurant force-placed insurance settlement was preliminarily approved on Jan. 30, 2015. A Final Fairness Hearing was held on July 16, 2015.
Nationstar expressly denies these allegations and assert their actions were fully authorized under the mortgage instruments and by law. The settlement does not imply Nationstar committed any wrongdoing.
Whoโs Eligible
Class Members of the Nationstar force-placed insurance settlement include:
All borrowers in the United States who, from Jan. 1, 2008 through Jan. 30, 2015, were charged by Nationstar under a hazard, flood, flood gap or wind-only LPI Policy for residential property, and who, within the Class Period, either:
(i) paid to Nationstar the Net Premium1 for that LPI Policyย OR
(ii) did not pay to and still owe Nationstar the Net Premium for that LPI Policy.
Potential Award
Varies.ย Defendants have agreed to provide a cash award or credit in the amount ofย 12.5% of the Net Premium charged to the claimant during the Class Period for the LPI Policy by Nationstar, provided each Settlement Class Member submits a valid and properly completed Claim Form, including for some claimants, providing a form of verification of their identity.
Whether a Settlement Class Member is eligible to receive a cash award or credit (towards what the Settlement Class Member owes the Nationstar Defendants) depends on whether he or she paid the premiums charged by the Nationstar Defendants for the LPI Policy or whether he or she did not pay but still owes those premiums to the Nationstar Defendants.
Proof of Purchase
You must provide proof of identity along with your completed Claim Form in order for it be considered valid, consisting of one of the following verifications of identity:
- Signature of a witness who is 18 or older
- Photo ID with signature
- Copy of Nationstar mortgage statement issued to Claimant(s)
- Completed notary verification
Claim Form
Claim Form Deadline
10/14/2015
Claim Forms must be submitted online or mailed to the Settlement Administrator with a postmark no later than 60 days after the Final Settlement Date. This means this deadline may be changed to a later dateย if there are delays after the Final Fairness Hearing, such as appeals.
NOTE: According to the settlement website, the deadline to file a claim has been extended to Feb. 8, 2016.
Case Name
Braynen v. Nationstar Mortgage LLC,ย Case No. 14-cv-20726-GOODMAN, in the U.S. District Court for the Southern District of Florida.
Final Hearing
07/16/2015
Settlement Website
www.BraynenSettlementInfo.com
Claims Administrator
Braynen v. Nationstar
c/o Heffler Claims Group
P.O. Box 540
Philadelphia, PA 19105-0540
844-528-0182
Class Counsel
Adam M. Moskowitz
KOZYAK, TROPIN, & THROCKMORTON, P .A.
Aaron S. Podhurst
PODHURST ORSECK, P .A.
Lance A. Harke
HARKE CLASBY & BUSHMAN LLP
Defense Counsel
Counsel for Nationstar Defendants:
John B. Sullivan
Mary Kate Kamka
SEVERSON & WERSON
Counsel for the Assurant Defendants:
Frank G. Burt
CARLTON FIELDS JORDEN BURT, P.A.
Join a Free Force-Placed Insurance Class Action Lawsuit Investigation
If you paid for force-placed insurance from a lender, you may be eligible to join a free class action lawsuit investigation into the improper charges you may have paid. Find out more at the Home Force-Placed Insurance Class Action Lawsuit Investigation.
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23 thoughts onNationstar, Assurant Force-Placed Insurance Class Action Settlement
Iโve not received anything about my settlement. I filed before the deadline. Please keep me informed
Thanks
Cynthia Glisson
have you received any information yet? I am the same as you and have not heard anything
I did as well sent in my mortgage proof and I have not heard anything from this class action. What do i do now.
I was awarded a settlementโฆno one will return my callโฆwhat is going onโฆleft repeated message
My number is 8327544704
I filled out my forms but I havenโt heard anything yet. Is there a number you can call.
I sent in all of my information before the October 14, 2015 deadline but havenโt heard a word since, is it settled? is it over?
UERGENTEโฆ.!!!!!!URGENTE. ESTIMADOS ABOGADOS ES PARA ACLARAR CIERTAS DUDAS EN RELACIรN A MI QUERELLA CON USTEDES DE NATIONSTAR MI ESPOSA CONSIDERA QUE SE ENCUENTRA QUE LA ESTรN ENGAรANDO o TIMANDOLA A CONSECUENCIA DE UNA LLAMADA DE USTEDES DICIรNDOME Y QUE EL BANCO DICE QUE NOSOTROS NO ESTAMOS O NO CUALIFICAMOS POR TAL RAZรN ENTENDEMOS QUE SOMOS VรCTIMAS DE LA MISMA CITUACION QUE MUCHOS ESTรN PASANDO. TANSOLO UNA LLAMADA DICIENDO QUE NO CUALIFICAMOS NO HAY DOCUMENTOS DE USTEDES NOS HALLAN EVIADO POR CORREO DICIENDO EL POR QUE NO SE CUALIFICA . PORQUE ELLOS NOS HAN PRECIONADO AL IGUAL QUE LOS DE USA. CREO QUE ESTรN DISCRIMINANDO POR SER PUERTORIQUEรOS. TAMBIรN ESTAMOS $ PAGANDO LA MORGAGE A NATIONSTAR. Y NOS ESTABA PRECIONANDO 787-615 0523 ESPERANDO SU CONTESTACIรN URGENTE
MI ESPOSA ES SE A. LUZ S GONZรLEZ GONZ. MI NOMBRE ES LUIS G. RUรZ HAN. 787-615-0523 Y ESTAMOS DISPONIBLES PARA CONTESTAR TODOS LAS PREGUNTAS. Y ESPERANDO TAMBIรN QUE NOS CONTESTEN NUESTRAS PREGUNTAS GRACIAS
I too have my mortgage with Nationstar. They harassed me until I refinanced the loan I had with them with them. Every since I refinanced with nationstar they have increased my note from $425 a month to $697 a month then recently reduced it to $587 a month. I have mine drafted from my checking account and they now are charging me late fees?! Then I have my insurance policies, wind, flood and hazard. I changed hazard companies and had 2 insurances overlapping, now they say I donโt have insurance and charging me more, and that is after my new insurance company provided NationStar with my dec page and proof of payment. I hate NationStar, they are crooked
Have your Insurance agent resend it with the date it became effective. Also have them call Nationstar and straighten it out. Thatโs what you pay Insurance Agent to do. Then call Nationstar just to verify. They should credit your escrow or send you a refund check. They credited me back the whole annual premium amount even though it was 6 months into the policy period until I got my own insurance.