Martin & Jones, PLLC
Call today for a Free consultation.
800-662-1234

American Banker Reports on Challenges to Lenders' Force-Placed Insurance Practices

American Banker, the nation’s leading publication dealing with the banking industry, reported on mounting challenges to lenders’ alleged self-dealing with force-placed hazard or homeowner’s insurance. In addition to a number of lawsuits filed against banks and mortgage servicers across the country, regulatory authorities are now investigating whether banks are unfairly taking advantage of consumers.

The New York Department of Financial Services recently held a public hearing to investigate alleged abuses by lenders in the force-placed insurance arena. In connection with that investigation, several financial services providers agreed to a set of servicing “best practices” that seek to do away with self-dealing and limit the use of force-placed insurance. Additionally, the new Consumer Financial Protection Bureau (“CFPB”) is investigating whether new restrictions are needed with respect to the practice. Last summer, the Department of Housing and Urban Development transferred its authority to enforce the Real Estate Settlement and Procedures Act to the CFPB along with much of its enforcement staff. Analysts following consumer issues noted that force-placed insurance is the type issue that would be ripe for CFPB investigation and regulation.

No Comments

Leave a comment
Comment Information

Testimonials

Contact US Get Help Now

Send us an email or call us today at 800-662-1234 to speak with an attorney about your claim or to arrange a free consultation. It costs nothing to call and there is no obligation. In fact, we are not paid until your case is resolved. Se habla español. If you are unable to travel to one of our offices in Raleigh, Durham and Wilmington, we will meet with you at your location.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Raleigh Office
410 Glenwood Avenue, Suite 200
Raleigh, NC 27603

Toll Free: 800-662-1234
Phone: 919-821-0005
Raleigh Law Office Map

Wilmington Office
1213 Culbreth Drive, Suite 121
Wilmington, NC 28405

Toll Free: 800-662-1234
Phone: 910-256-4005
Wilmington Law Office Map

Durham Office
302 East Pettigrew Street, Suite 330
Durham, NC 27701

Toll Free: 800-662-1234
Phone: 919-544-3000
Durham Law Office Map