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Tag Archives: Force-placed Insurance

Force-Placed Insurance Suit Against Citibank, MidFirst Proceeds

A federal judge in New York has allowed a class action lawsuit against Citibank and MidFirst Bank over force-placed insurance practices to proceed, according to a release from lawfirms representing plaintiffs in the case. The plaintiffs are accusing Citibank and MidFirst Bank of maintaining a policy and practice of force-placing flood insurance above the amounts required by the borrowers' mortgage contracts and federal law. In an emailed statement, a spokesperson with Citibank said, ""We abide by federal guidelines in allowing designated customers time to purchase their own flood insurance before we are required to purchase it on their behalf.""

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IL Group’s Customer Service Earns Repeat Business from Fay Financial

IL Group, a provider of customized lender placed insurance products and services headquartered in Gulf Shores, Alabama, has counted Chicago-based Fay Financial as a client for three years. The company announced last week that Fay Financial will continue to leverage IL Group for customized lender-placed and forced-placed insurance products and services to streamline workflow, improve efficiencies, and maintain regulatory compliance. IL Group also announced the launch of a new company website to better reflect its strategic vision and support anticipated growth.

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Fitch Says Rules CFPB Is Considering Will Cause Servicers to Pay Up

In response to mortgage servicing rules the Consumer Financial Protection announced it may propose, Fitch Ratings issued a statement and said it believes mortgage servicers will incur increased operational, compliance, and reporting expenses if the rules take effect. To create more transparency, the CFPB said it is considering rules which require clear monthly mortgage statements, a warning before interest rates adjust, options to avoid ""force-placed"" insurance, and early information to keep customers out of foreclosure.

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