Homeward Lender Placed Insurance Class Action Settlement

A settlement has received preliminary approval in a class action lawsuit that alleged Florida borrowers were charged excessive and unreasonable lender-placed hazard insurance for mortgages serviced by Homeward Residential Inc.

According to the class action lawsuit, Homeward Residential Inc. (previously called American Home Mortgage Servicing Inc., or AHMSI) allegedly placed hazard insurance on homeowners’ properties when there was a lapse in coverage that cost homeowners way more than it should have.

Plaintiff Julie Ann Rico claims that Homeward charged outrageous amounts for the force-placed insurance because it conspired with other companies as part of an agreement “to receive commissions, lump-sum payments, discounted and subsidized services, and other compensation in exchange for charging borrowers excessive premiums for these LPI policies.”

These allegations brought forth by Rico claimed that Homeward violated the Florida Deceptive and Unfair Trade Practices Act (FDUPTA), unjustly enriched itself and breached the covenant of good faith and fair dealing.

Homeward denied all allegations brought forth and continues to maintain that all charges for lender placed insurance were appropriate and unlawful.

The Court did not decide in favor of either party, as the settlement was reached as a result of negotiations between the two sides.

The settlement will provide more than $9 million to eligible Class Members, and none of the money will be returned back to Homeward. Additional settlement money used to pay attorneys’ fees and costs, service awards and settlement administration fees are in addition to the $9 million and also will not be returned to the Homeward.

Eligible Class Members in this Settlement will receive either a payment or escrow account credit that equals at least 12.5 percent of the lender-placed insurance premium that was charged to the homeowner’s account during the Class period of July 1, 2008 and Mar. 31, 2013.

Homeowners who paid off their mortgage before Mar. 4, 2016 will received 12.5 percent of the LPI payment on a prepaid cash card.

Individuals who choose to opt out of the settlement or who wish to object to the settlement must do so by July 15, 2016.

Who’s Eligible

“If you were or are a borrower with a loan secured by property in Florida who were charged by Homeward between July 1, 2008 and March 31, 2013 for one or more LPI policies, and who either (1) paid some or all of this premium (less any refund you received), or (2) did not pay some or all of this premium but still owe some or all of this premium, you are a member of the Settlement Class and may be eligible for a payment or mortgage escrow account credit.”

Potential Award

Varies.

Amount will be 12.5 percent of LPI charged on homeowner account during eligible Class period.

Proof of Purchase

N/A

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

08/29/2016

Case Name

Julie Ann Rico v. American Home Mortgage Servicing Inc., Case No. 502009CA034657, in Florida 15^th Circuit Court

Final Hearing

07/29/2016

Settlement Website

www.HomewardLPISettlement.com

Claims Administrator

Homeward LPI Settlement
c/o GCG
PO Box 10275
Dublin, OH 43017

1-855-907-3221
HomewardLPISettlement@gardencitygroup.com

Class Counsel

Edward F. Haber
Michelle H. Blauner
Adam M. Stewart
SHAPIRO HABER & URMY LLP

Louis M. Silber
SILBER & DAVIS

Jeffrey M. Liggio
LIGGIO BENRUBI, P.A.

James A. Bonfiglio
LAW OFFICES OF JAMES A. BONFIGLIO, P.A.

Robert J. Axelrod
AXELROD LLP

Defense Counsel

Brian V. Otero
HUNTON & WILLIAMS LLP