Selene Lending Forced-Placed Insurance Class Action Settlement
The “Class” shall include all borrowers in the United States who, within the Class Period (as defined in Section 1(b) below), were charged by Selene Finance, LP (“Selene”) under a hazard, flood, flood gap, or wind LPI policy issued by or through Southwest Business Corporation (“SWBC”) and Great American E&S Insurance Company (“GAESIC”), for Residential Property, and who, within the Class Period, either (i) paid to Selene the Net Premium for that LPI Policy or (ii) did not pay to and still owe Selene the Net Premium for that LPI Policy. Excluded from the Class are: (i) individuals who are or were during the Class Period officers or directors of Selene, SWBC, or GAESIC or any of their respective affiliates; (ii) any justice, judge, or magistrate judge of the United States or any State, their spouses, and persons within the third degree of relationship to either of them, or the spouses of such persons; (iii) all borrowers who only had an LPI Policy that was cancelled in its entirety such that any premiums charged and/or collected were fully refunded to the borrower or the borrower’s escrow account; and, (iv) all borrowers who file a timely and proper request to be excluded from the Class. Each such qualifying member of the Class shall be referred to as a “Class Member.”
The “Class Period” shall commence on June 1, 2015, and shall continue through and including July 19, 2017.
“LPI Policy” means a lender-placed residential hazard, flood, flood gap, or wind insurance policy or policies procured by SWBC and issued by GAESIC, and placed pursuant to a mortgage loan agreement, home equity loan agreement, or home equity line of credit serviced by Selene to cover a borrower’s failure to maintain the required insurance coverage on the residential property securing the loan.
Qualified claims will likely receive payments worth 8.5 percent of the net premium they were charged by Selene during the class period for lender placed insurance.
Proof of Purchase
Robin McNeil and Lillian Marshall v. Selene Finance LP, et al., Case No. 1:16-cv-22930-EGT District Court for the Southern District of Florida
This lawsuit involves lender-placed insurance (“LPI”), which is insurance (hazard, flood, flood gap, 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, Selene uses SWBC to pay the premiums to the LPI insurer who writes the policy, and then Selene charges the borrowers for those premiums.