Specialized Loan Servicing LPI Class Action Settlement

Specialized Loan Servicing, along with other defendants, have agreed to a settlement that will resolve claims regarding unfair lender placed insurance policy terms.

Under the settlement, compensation may be available for mortgage borrowers who were charged for a hazard, flood, flood gap, or wind-only lender placed insurance who were charged premiums by Specialized Loan Servicing LLC between Jan. 1, 2011 and Oct. 31, 2018.

A lender placed insurance policy can be issued by a mortgage lender if a borrower fails to provide sufficient homeowners insurance coverage or if coverage lapses for any reason.

Instead of homeowners directly paying the insurance companies, the lender puts a policy into place, pays the premiums, and charges those premiums to homeowners.

Although there is nothing illegal about a lender placed insurance policy, plaintiffs claimed that Specialized Loan Servicing accepted illegal kickbacks from insurance companies.

The plaintiffs also claim that this scheme and the process of choosing lender placed insurance policies resulted in excessive fees and premiums.

Claims against Specialized Loan Servicing, American Security Insurance Company, Standard Guaranty Insurance Company, and Voyager Indemnity Insurance Company have been settled, although none of the defendants admit any wrongdoing. Instead, a settlement provides an avenue for both defendants and plaintiffs to avoid the costs of further litigation.

Settlement Class Members are eligible to receive either three percent or six percent of their net premium. If they were charged the premium between Jan. 1, 2011 and July 30, 2015, Class Members can receive six percent. If they were charged the premium after Aug. 1, 2015, Class Members can receive three percent.

Class counsel plans to ask for up to $1.25 million in attorneys’ fees and expenses from the settlement fund. They will also request a $5,000 service award for the named plaintiff’s services during the class action lawsuit.

Class Members who want to be excluded from the terms of this settlement or object to it have until March 2, 2019 to do so.

Who’s Eligible

Mortgage borrowers who were charged by Specialized Loan Servicing for a hazard, flood, flood gap, or wind-only lender placed insurance between Jan. 1, 2011 and Oct. 31, 2018.

Potential Award

3% – 6% of the net premium paid.

If the claimant was charged by Specialized Loan Servicing between Jan. 1, 2011 and July 30, 2015, they can receive six percent of the net premium. Class Members who were charged after Aug. 1, 2015, can receive three percent of the net premium.

Proof of Purchase

A copy of a SLS mortgage statement, a valid form of identification and a partial Social Security number is required when submitting a claim.

Claim Form

CLICK HERE TO FILE A CLAIM »

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

7/1/2019

Case Name

Smith v. Specialized Loan Servicing LLC, et al., Case No. 3:17-cv-06668-BRM-DEA, in the U.S. District Court for the District of New Jersey

Final Hearing

4/1/2019

UPDATE: The Specialized Loan Servicing LPI Class Action Settlement was granted final approval on April 1, 2019. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

UPDATE 2: TCA viewers started receiving Specialized Loan Servicing LPI Class Action Settlement checks on November 2, 2019 for as much as $129.26. Let us know if you received a check!

Settlement Website

SmithSettlementInfo.com

Claims Administrator

Smith v SLS Administrator
c/o Rust Consulting – 6288
PO Box 44
Minneapolis, MN 55440-0044
1-877-625-9420

Class Counsel

Adam Moskowitz
THE MOSKOWITZ LAW FIRM PLLC

Defense Counsel

Frank G. Burt
CARLTON FIELDS JORDEN BURT PA