Numerous banks and mortgage lenders are under fire for the terms of their so-called “force placed insurance policies,” with some even facing legal and regulatory actions related to purchase of these policies. Banks and mortgage companies under investigation include:
“Force placed insurance,” also referred to as “creditor placed” or “lender placed” is insurance that banks/mortgage companies purchase to cover a home when a homeowner lapses on mandated insurance coverage.
This practice, while legal, has been linked to other unethical, deceitful, and illegal tactics aimed to benefit lenders and insurance providers at the homeowner’s expense.
Lenders have been known to take advantage of force placed insurance policies by utilizing a number of unscrupulous business tactics, including:
If you believe your bank or mortgage lender has taken advantage of you through a force placed insurance policy, contact Thomas J. Henry immediately. Attorneys are available 24/7 to talk to you about your rights.