PennyMac Force-Placed Insurance Settlement

Settlement Structure: Claims Made

Active: Closed

Closed Settlement Statement:
According to court documents, the claim submission deadline has passed. Please contact the claims administrator if you have any questions.

Case Summary:

This settlement settles a class action involving lender-placed insurance (LPI), that is, insurance for hazard, flood, or wind, that is placed on a borrower’s property to protect both borrower and lender. This “force-placing” is usually done when the borrower’s insurance policy lapses or when the borrower doesn’t maintain an insurance policy that is acceptable to the lender. The lender pays the premiums to the insurer, then charges the borrowers for the premiums.

In the complaint for this case, lender PennyMac was accused of placing insurance in a way that caused it to receive kickbacks from the insurer. The complaint also claimed that the rates and amount of coverage were excessive. 

Docket Number:

1:16-cv-20413-JEM

Company: PennyMac Financial Services Inc.

Filing Deadline: July 13, 2017

Class Period: February 1, 2011 to October 18, 2016

Objection Deadline: March 15, 2017

Exclusion Deadline: March 15, 2017

Final Approval Hearing: April 14, 2017

Proof of Purchase:

Identification

Eligibility:

You might be eligible for an award if you were charged by PennyMac for a hazard, flood, or wind LPI policy issued by one of the insurance companies listed below between February 1, 2011 and October 18, 2016.

The insurance companies include:

  • QBE Specialty Insurance Company
  • Praetorian Insurance Company
  • QBE FIRST Insurance Agency, Inc./NGLS Insurance Services, Inc.
  • QBE Insurance Corporation
  • Balboa Insurance Company
  • Meritplan Insurance Company
  • Seattle Specialty Insurance Services, Inc.
  • Southwest Business Corporation
Typical Settlement Amount:

If you paid all or some of your premiums for the insurance, you may be eligible for a cash award. If you did not pay the premiums and still owe them, you may be eligible for either a cash payment or a credit towards what you still owe PennyMac. See the notice for further details.

Total Settlement Amount: Unknown

Class Representative Proposed Incentive Fee:

$5,000

Law Firms:
Harke Clasby & Bushman
Kozyak Tropin & Throckmorton
Podhurst Orseck

Claim Form: Cooper Settlement Claim Form

Case Name: Cooper v. PennyMac Loan Services, LLC

Settlement Website: Cooper Settlement Website

Claims Administrator:
RUST CONSULTING

Claims Administrator Contact Information:

COOPER SETTLEMENT CENTER

C/O RUST CONSULTING - 5301

 PO BOX 2563
FARIBAULT MN 55021-9563 

Tags: Forced Placed Insurance, Homeowners Insurance