Nationstar, Assurant Force-Placed Insurance Class Action Settlement

Mortgage lender Nationstar Mortgage LLC 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 that charged homeowners inflated premiums for hazard, flood, flood-gap, or wind insurance coverage forced on their properties.

Force-placed insurance, also known as lender-placed insurance (“LPI”), is insurance (hazard, flood, flood gap, or wind-only) that is placed on a homeowner’s property to protect the borrower and mortgage lender when the homeowner’s insurance policy lapses, or when the homeowner does not maintain a homeowner’s insurance policy that is acceptable to the mortgage lender.

When an LPI Policy is placed pursuant to the homeowner’s 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) accuses Nationstar and Assurant of “colluding with force-placed insurance providers to make lucrative profits” at the cost of unsuspecting 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 “kickbacks” 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 to the illegal kickback allegations, the Nationstar force-placed insurance class action lawsuit alleges that the way in which Nationstar’s 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.

Who’s 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 Policy OR

(ii) did not pay to and still owe Nationstar the Net Premium for that LPI Policy.

Potential Award

Varies. Defendants have agreed to provide a cash award or credit in the amount of 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

CLICK HERE TO FILE A CLAIM »

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 date 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, 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.