Carrington Mortgage, Fay Servicing, Residential Credit Solutions Settlement

Settlements have been reached in a class action lawsuit involving allegations of improper mortgage insurance kickbacks related to lender-placed insurance policies.

If you were charged by Carrington Mortgage Services LLC, Carrington Mortgage Holdings LLC, Carrington Holding Company LLC, Residential Credit Solutions Inc., or Fay Servicing LLC for a lender-placed insurance policy for your residential property, you may be entitled to a cash payment from the class action settlement.

Lender-placed insurance (LPI), also called force-placed insurance) is a type of insurance policy that is placed on a borrower’s property when the borrower fails to maintain a policy that is acceptable to the mortgage lender. When a mortgage lender places insurance on a borrower’s property, the lender pays premiums to the insurance company that writes the policy. The mortgage lender then charges the borrower for the premiums.

While it is not illegal for a mortgage lender to impose a lender-placed insurance policy on a borrower’s property, the policy must not be excessive or cause the lender to receive an unauthorized benefit.

The plaintiffs accused the mortgage lender defendants of force-placing insurance policies on their residential properties in a manner that allegedly caused the lender to receive an unauthorized benefit in the form of “kickbacks” from the AMIG defendants and/or Southwest Business Corporation (SWBC).

The AMIG defendants include: American Modern Insurance Group, Inc., American Modern Home Insurance Company, The Atlas Insurance Agency, Inc., Midwest Enterprises, Inc., American Family Home Insurance Company, American Modern Surplus Lines Insurance Company, American Western Home Insurance Company, American Southern Home Insurance Company, American Modern Insurance Company of Florida, Inc., American Modern Select Insurance Company, and American Modern Lloyds Insurance Company.

The defendants deny the allegations in the force-placed insurance class action lawsuit but they have agreed to settle the litigation to avoid the burden and expense of trial.

Class Members have until Dec. 13, 2017 to opt out of or object to the lender-placed insurance class action settlement.

Who’s Eligible

Class Members for the settlements are defined as follows:

Carrington Settlement Class: Includes all borrowers in the United States who were charged by the Carrington defendants for a hazard, flood, flood-gap or wind lender-placed insurance policy issued by AMIG defendants between Dec. 1, 2012 and Aug. 9, 2017, and who either paid at least part of the net premium to Carrington for the LPI policy or who did not pay and who still owe Carrington the net premium for the LPI policy.

Residential Credit Solutions Class: Includes all borrowers in the United States who were charged by RCS for a hazard, flood, flood-gap or wind LPI policy issued by an LPI insurer for residential property between Jan. 1, 2008 and Aug. 9, 2017, and who either paid to RCS part or all of the net premium for that LPI policy or who did not pay and still owe RCS the net premium for the LPI policy.

Fay Servicing Class: Includes all borrowers in the United States who were charged by Fay for a hazard, flood, flood-gap or wind LPI policy issued by an LPI insurer for residential property between Jan. 1, 2009 and Aug. 9, 2017, and who either paid to Fay part or all of the net premium for that LPI policy or who did not pay to and still owe Fay the net premium for that LPI policy.

Potential Award

The defendants have agreed to pay a cash award of a percentage of the net premium that the lender charged the Class Member during the applicable Class Period.

Proof of Purchase

Class Members may be asked to provide identity verification documents. It may also be necessary to provide verification by a witness and/or a notary public.

Claim Form

CLICK HERE TO FILE A CLAIM FOR THE CARRINGTON SETTLEMENT »

CLICK HERE TO FILE A CLAIM FOR THE RCS SETTLEMENT »

CLICK HERE TO FILE A CLAIM FOR THE FAY SETTLEMENT »

Claim Form Deadline

3/28/2018

NOTE: You may download a copy of the Claim Form from the Important Documents section of the relevant settlement website instead of using the online Claim Form.

Case Name

Strickland, et al. v. Carrington Mortgage Services LLC, et al., Case No. 1:16-cv-25237-JG, in the U.S. District Court for the Southern District of Florida, Miami Division

Final Hearing

1/22/2018

Settlement Website

Carrington settlement website: www.StricklandLPISettlement.com

Residential Credit Solutions settlement website: www.SekulaLPISettlement.com

Fay settlement website: www.JacksonLPI.com

Claims Administrator

Strickland LPI Settlement
c/o JND
P.O. Box 6878
Broomfield, CO 80021
1-844-632-0308

Sekula LPI Settlement
c/o JND
P.O. Box 6878
Broomfield, CO 80021
1-844-470-7978

Jackson LPI Settlement
c/o JND
P.O. Box 6878
Broomfield, CO 80021
1-844-702-7327

Class Counsel

Adam M. Moskowitz
KOZYAK TROPIN & THROCKMORTON LLP

Aaron S. Podhurst
PODHURST ORSECK PA

Lance A. Harke
HARKE CLASBY & BUSHMAN LLP

Defense Counsel

Counsel for Carrington:
Robyn Quattrone
BUCKLEY SANDLER LLP

Counsel for Fay:
Elizabeth Campbell
LOCKE LORD LLP

Counsel for AMIG Defendants:
Mark A. Johnson
Rodger L. Eckelberry
Robert Tucker
BAKER & HOSTETLER LLP

Counsel for SWBC:
Diana C. Manning
Benjamin J. DiLorenzo
BRESSLER AMERY & ROSS PC