GMAC Mortgage Force-Placed Insurance Class Action Settlement

A $13 million class action settlement has been proposed, and if it is approved it would provide benefits to certain residential mortgage loan borrowers whose loans were serviced by GMAC Mortgage LLC.

If you are a residential mortgage loan borrower whose loan was serviced by GMAC Mortgage and you were charged for force-placed insurance by GMAC at any time from Feb. 3, 2004 through Oct. 2, 2013, your rights may be affected by this class action settlement.

If approved, this GMAC force-placed insurance settlement will resolve a class action lawsuit that alleges GMAC Mortgage conspired with Balboa Insurance Company to carry out a scheme to defraud borrowers by inflating the amounts they charged for lender-placed insurance policies, also known as force-placed insurance policies, on loans serviced by GMAC Mortgage. The plaintiffs alleged GMAC received kickbacks from Balboa.

The defendants deny any wrongdoing but agreed to settle the force-placed insurance class action lawsuit to avoid the burden, expense and uncertainty of ongoing litigation.

If you would like to exclude yourself from or object to this GMAC Mortgage force-placed insurance settlement, you must do so no later than May 10, 2016.

Who’s Eligible

Class Members of the GMAC force-placed insurance settlement include: “All residential mortgage loan borrowers whose loans were serviced by GMACM and from whose payments GMACM recouped or recovered, in whole or part, charges for Lender-Placed Insurance, including, without limitation, any borrowers whose payments were applied, in whole or part, to charges for Lender-Placed Insurance, at any time during the Class Period.”

Under the terms of the proposed force-placed insurance class action settlement, the Class Period is Feb. 3, 2004 through Oct. 2, 2013.

Potential Award

Varies.

The awards will be distributed pro rata to Class Members based on a formula that compares each Class Member’s losses to the total losses of all eligible Class Members. Only Class Members whose allocation is $10 or more will receive payment from the GMAC class action settlement.

Proof of Purchase

N/A

FAQs

FREQUENTLY ASKED QUESTIONS »

Claim Form Deadline

N/A. Class Members do not have to file a Claim Form to be eligible for benefits from this class action settlement.

Case Name

In re: Residential Capital LLC, et al., Case No. 12-12020 (MG), in the U.S. Bankruptcy Court for the Southern District of New York

Final Hearing

5/24/2016

Settlement Website

www.GMACMortgageLenderPlacedInsuranceClassActionSettlement.com

Claims Administrator

GMAC Mortgage Lender Placed Insurance Settlement Administrator
P.O. Box 30206
College Station, TX 77842-3206
1-844-830-5220
admin@GMACLenderPlacedInsuranceSettlement.com

Class Counsel

Mark A. Strauss
Thomas W. Elrod
KIRBY MCINERNEY LLP

Defense Counsel

Norman S. Rosenbaum
MORRISON & FOERSTER LLP

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. Get a free case evaluation now.