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Mortgage lender Ocwen Loan Servicing, LLC and insurance giant Assurant Inc. have agreed to a $140 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.
An estimated 400,000 Ocwen borrowers nationwide are included in the proposed Ocwen class action settlement, announced in April.
If approved, the settlement will resolve a 2014 class action lawsuit (Lee v. Ocwen Loan Servicing) that accuses Ocwen, Assurant and its subsidiary American Security Insurance Co. (collectively referred to as “Assurant”) of entering into “an extremely lucrative profit-making scheme that reaps hundreds of millions of dollars annually” at the cost of unsuspecting borrowers.
According to plaintiffs, Ocwen and Assurant entered into a collusive agreement that allowed Ocwen to receive unauthorized kickbacks from Assurant in the form of commissions or other payments by using Assurant as its lender-placed insurance provider.
Lender-placed insurance (also known as force-placed insurance) is hazard, flood, flood gap or wind insurance coverage that is placed on a borrower’s property by the mortgage lender to protect the borrower and lender when the borrower’s insurance policy lapses, or when the borrower does not maintain a homeowner’s insurance policy that is acceptable to the mortgage lender.
In addition to the illegal kickback allegations, the Ocwen force-placed insurance class action lawsuit alleges that the way in which Ocwen’s policies were obtained and placed caused borrowers to pay inflated rates for excessive coverage.
The Ocwen/Assurant force-placed insurance settlement was preliminarily approved on Dec. 18, 2014. A Final Fairness Hearing is scheduled for June 11, 2015.
Before the hearing, the defendants and plaintiffs must answer several questions raised by objectors about the fairness of the proposed class action settlement.
U.S. Magistrate Judge Jonathan Goodman agreed with the objectors, ruling May 13 that the parties need to disclose how much money Class Members would actually receive from the class action settlement, among other answers, before the Final Hearing. The parties have until May 26 to respond.
Who’s Eligible
Class Members of the Assurant, Ocwen force-placed insurance settlement include:
All borrowers in the United States who, from Jan 1., 2008 through Jan. 23, 2015, were charged by Ocwen under a hazard, flood, flood gap or wind-only LPI Policy for residential property, and who, within the Class Period, either (i) paid to Ocwen the Net Premium1 for that LPI Policy or (ii) did not pay to and still owe Ocwen 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 Ocwen.
More information about the actual amount of money you may be eligible to receive from the Ocwen class action settlement may be provided at a later date, but is not available at this time [See above re: Judge Goodman’s orders for more information regarding money for Class Members].
Proof of Purchase
You must provide several pieces of information with your Claim Form in order for it be considered valid, including but not limited to:
- Social Security Number
- Photo ID with signature
- Copy of an Ocwen mortgage statement issued to Claimant(s)
- Completed notary verification
Claim Form
Claim Form Deadline
7/22/2016
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 in approving the class action settlement, such as objections.
UPDATE: The Ocwen force-placed insurance class action settlement received final approval on Sept. 14, 2015. Class Members have until Dec. 14, 2015 to file a claim.
UPDATE 2: According to the settlement website, the settlement was appealed. The appeals were dismissed on May 23, 2016. Thus, the claim form deadline was changed to July 22, 2016.
Case Name
Jennifer Lee v. OCWEN Loan Servicing LLC, et al, Case No. 0:14-cv-60649, in the U.S. District Court for the Southern District of Florida.
Final Hearing
06/11/15
Settlement Website
www.LeeSettlementInfo.com
Claims Administrator
Lee Settlement Center
c/o Rust Consulting
P.O. Box 2225
Faribault, MN 55021-1625
877-294-6778
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 Assurant:
Frank G. Burt
CARLTON FIELDS JORDEN BURT, P.A.
Counsel for Ocwen:
Brian V. Otero
HUNTON & WILLIAMS LLP
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82 thoughts onOcwen, Assurant Force-Placed Insurance Class Action Settlement
My Son has been ripped off by Ocwen. They had signed his name on forms. They used Robo Signers on Financial papers. They never showed up for any of the four court hearing and the judge did nothing. My Sons attorney ask the judge why no action was taken. He stated that we need to set up another court date. Ocwen also raised the monthly payment with no explanation, then charged my son with late fees and penalties. Then Ocwen filed Foreclosure Action with no explanation for their action. Ocwen, to this date, has still not taken the action off. This has ruined my son and daughter-in-laws credit, not to mention the extra interest, penalties and fees Ocwen added on. I served Foreclosure Notices for the Court so I know what all these Financial Institutions have done. To me, it sickens me to know that they were allowed to rip so many people off and nothing was done. I would like to know if there is anyone willing to help? Just look up all the lawsuits against Ocwen & HSBC who owns Ocwen. Please let me know if there is anyone willing to fight the corrupt system and help these people their lives back.
If you want to file online you have to call and get an ID number mailed to you first. This is what it says online – If you do not have a CLAIMANT ID NO, you may download the Claim Form to be mailed to the Claims Administrator or call toll-free at 1-877-294-6778 request a notice and claim form be mailed to you. Once you receive the requested notice and claim form in the mail you may choose to submit a Claim Form online or mail the completed form to the Claims Administrator pursuant to the Instruction for Class Action Claim Form.
I have filed a claim with an earlier due date of 09/09/2015. I am confused as to what I need to do. Do I need to submit another claim and submit by the new date of 12/14/2015, or is this for people who did not get to file timely before? This is confusing. Please help!!!!!
I was wondering that as well. I submitted a claim prior to September and am not sure if I need to submit again? Have you found out any further information regarding such?
UPDATE: The Ocwen force-placed insurance class action settlement received final approval on Sept. 14, 2015. Class Members have until Dec. 14, 2015 to file a claim.
I just found out about this, but it says I must file to become a member of the class before September 9, 2015. I received NO Notice regarding this lawsuit (and have not received even a statement from Ocwen since 2009. What do I do?
I just learned about this today. Is it too late for me to file a claim?
I jsut found out about this lawsuit. I can not print the form offline nor can I submit the form online as I do not have a claim number to get into the site. I was charged forced insurance by Ocwen and paid it in full as they required! I would like to be included in the class action but do not have the required form. I was not notified of this lawsuit
Claim deadline again extended..check se%lement page for new update
The link to the claim form and leesettlementinfo does not work. How can I get the claim form?
Andrea, I am also a member and was not notified. I am submitting my claim with the pertinent information and will wait to see whether or not I am rejected. I think my name was not submitted on purpose. My loan was assigned, sold and/or transferred from Bank of America to Ocwen effective June 18, 2012, with flood insurances in tact. BOA is also in trouble for the same thing
Top Class Actions, you may want to revisit the Lee v. Ocwen settlement litigation. There are many endorsed orders on the electronic docket reflecting that the Magistrate Judge (sitting by consent also as the District Judge on the case) is requiring the parties to substantiate their claims about their settlement stipulation and their fees. Dennis Wall, author of Lender Force Placed Insurance Practices (American Bar Association 2015).
Dennis, Maybe u can finally give me some answers. My name is Melinda, I unfortunately am a customer affected by this particular suit, however I was damaged in other ways as well because of Ocwens relationship with Assurant.
summary of events:
4-3-2012
My Ins policy with Peoples Trust renewal date
4-4-2012
Ocwen bought my loan from Saxon
*monthly mortgage statement escrow being paid to Peoples Trust through 11-2012*
10-26-2012 Hurricane Sandy skirts Fl high wind gusts and tons of heavy rain (Limbs puncture a hole in roof as well as intrusion of water in other areas of home from roof
11-2012 I call Peoples Trust to make a claim, they informed me policy was cancelled 6-2012
11-2012 Call Ocwen insurance who immediately transfer me to American Superior
1-2012 I call American Superior, they send adjuster who says because roof does have 75% of roof damaged that I should withdraw claim because it will only pay for interior damages which because of deductible is not worth making claim, I withdraw claim on her advise
3-2012 Begins to rain everyday damage get significantly worst inside and out. ,I have neighbor do some repairs to stop leaking
4-2012 I call Ocwenm immediately put through to AS ins. I file claim and get same adjuster, who then says they will not cover it because of age of roof, however spoke with AS ins supervisor who basically they will reimburse any repairs or replacement of roof I have done.
5-2012 I begin to get materials from mother who had leftovers (got quote on roof $10,000) to fix it.
email supervisor with info about materials,,,etc. He resends adjustor, have to ask for a copy of policy which I never received (hazard policy copy) Haz ins super expensive
6-2013 American Sup. hires a forensic roof expert to evaluate roof.
8-2013 Report with mass false info such as (in October 2012 my area only had .001percent rainfall!!! Lots of blatant wrong info.)
8-2012 denied coverage from Am superior
*Begin requesting all docs from of of web regarding my insurance abd escrow 2012
10-13 daughters ceiling caves in as well as major loss and damage in back of house
*Of web never gave notice or warning of hazard policy necessary for a full yr
*people’s trust says cancellation was for lack of my cooperation in not having an in house inspection, even had policy less than 2 yrs,conversation cancellation date was changed 3 Times
* people’s trust states they sent back premium to lender, I never saw credit on statement
*people’s give me a new policy even with damages
*I continue being billed for am sup
sorry so long….can u advise please help, I’m desperate!!!
Respectfully/ Melinda Goss 386-281-591
I am a qualifying candidate, however, I have not received a notice and I prefer to fill out the claim online. Please advise.