Class Eligibility

All borrowers in the United States who, within the Class Period, were charged by PennyMac Loan Services, LLC under a hazard, flood, or wind LPI policy issued or procured by QBE Specialty Insurance Company, Praetorian Insurance Company, QBE FIRST Insurance Agency, Inc. n/k/a NGLS Insurance Services, Inc., QBE Insurance Corporation, Balboa Insurance Company, Meritplan Insurance Company, Seattle Specialty Insurance Services, Inc., or one of their predecessors, successors, agents, or affiliates (collectively, the “QBE Defendants”) for Residential Property, and who, within the Class Period, either (i) paid to PennyMac the Net Premium for that LPI Policy or (ii) did not pay to and still owe PennyMac the Net Premium1 for that LPI Policy.

Estimated Amount

Varies

Members of the class will receive a cash payment or credit to their account of an amount equal to 10.5 percent or 5.5 percent of the net premium charged between Feb. 1, 2011 and Oct. 18, 2016 for the force-placed insurance policy,

Proof of Purchase

Yes

Case Name

Cooper v. PennyMac Loan Services LLC, et al.,
Case No. 1:16-cv-20413-JEM
District Court for the Southern District of Florida

Case Summary

This lawsuit involves lender-placed insurance (“LPI”), which is insurance (hazard, flood, or wind) that is placed on a borrower’s property to protect the borrower and mortgage lender when the borrower’s insurance policy lapses, or when the borrower does not maintain a homeowner’s insurance policy that is acceptable to the mortgage lender. When an LPI Policy is placed pursuant to the borrower’s mortgage contract, PennyMac pays premiums to the LPI insurer who writes the policy, and then PennyMac charges the borrowers for those premiums. The Plaintiffs have brought claims on behalf of all persons in the Settlement Class (as defined in Answer #5). Plaintiffs allege that when a borrower was required to have insurance for his or her property pursuant to a residential mortgage or home equity loan or line of credit, and evidence of acceptable coverage was not provided (for example, when the insurance policy did not exist or had lapsed), PennyMac would place insurance in a manner such that PennyMac allegedly received an unauthorized benefit. Plaintiffs allege further that PennyMac did so primarily to receive “kickbacks” from the QBE Defendants. Plaintiffs also allege that the way in which LPI policies were obtained and placed caused the rates and the amount of coverage to be excessive. All Defendants expressly deny Plaintiffs’ allegations and assert their actions were fully authorized under the mortgage instruments and by law. They also expressly deny that they did anything wrong and that PennyMac ever received an “unauthorized benefit,” “kickback,” or commission as a result of any LPI placement. There has been no court decision on the merits of this case and no finding that Defendants committed any wrongdoing.

Settlement Pool

$5,000,000

Deadline

7/13/2017

Contact


Cooper v. PennyMac Settlement
c/o Rust Consulting – 5301
P.O.Box 2563
Faribault, MN 55021
1-866-254-8702

9 responses to “PennyMac Loan Services Force-Placed Insurance Class Action Settlement”

  1. Jennifer mora says:

    Does this include JPMorgan/Chase bank as well?

    ADMIN – Hi Jennifer,

    No it does not.

  2. Brenda Rodgers says:

    Ocwen mortgage company placed hazard insurance on my property.

  3. Chandany says:

    How do we know if this happened to us? We are first time homeowners, almost 1 year now…

    ADMIN – Hi Chandany,

    You failed to pay your home insurance and PennyMac enrolled you in their insurance of choice. That is how you know.

    • Chandany says:

      Thank you for your quick response, ya we pay our insurance with our monthly pennymac, mortgage

      ADMIN – Hi Chandany,

      That is not force-placed insurance. That is insurance payment by escrow.

  4. APRIL WILLIAMS says:

    I have mailed in my claim form & called and left messeges, for someone to call me back. I also asked for another claim. And i haven’t heard anything back from them in weeks No Reply. How do i make sure my claim went in if no one is Tesponding back??

    ADMIN – Hi April,

    Usually the best way to go about it is to contact class counsel and express your dissatisfaction.

    • APRIL WILLIAMS says:

      No one is Responding back to my calls oR mail??

      ADMIN – Hi April,

      Consider escalating to class counsel. The information pertaining to class counsel is available in the long notice which can be accessed in the main settlement page.

  5. Sarah Turner says:

    Penny Mac is attempting to do the same thing to me at this very moment, because they claim my current policy does not cover wind damage (but it does). They claimed to have spoken with someone at my insurance company that said my policy does not cover wind, but I spoke with a Manager at my insurance company that said it did and we called PennyMac together. Since it’s not a separate policy (as required in some states, but not mine), we’re having to send them my entire policy/contract and they are saying that might not even be acceptable and they will do forced insurance on me. I’m so stressed out about it and after reading through this settlement, it seems like they’re trying to do to me what they did to lots of other people. It seems so wrong. Isn’t a settlement like this, supposed to correct some behavior/policies/operations at PennyMac?

    ADMIN – Hi Sarah,

    Unless there are multiple people who are experiencing the same issue you are experiencing and are unable to obtain a proper resolution you do not have the potential for a class action settlement.

  6. Ken says:

    When do checks go out for class action.settlement

    ADMIN – Hi Ken,

    This settlement was finalized and paid long time ago.

  7. Ken Barron says:

    No check received…

    ADMIN – Hi Ken,

    Consider contacting the class action administrator to check on the status of your claim.

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