Specialized Loan Servicing Lender-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 resolves a class action concerning lender-placed insurance (LPI) placed on mortgaged homes by Specialized Loan Servicing, LLC (SLS). LPI is placed on a mortgaged property when the borrower’s insurance lapses or if the lender believes that the borrower’s insurance in inadequate. With LPI, the borrower pays the loan servicer for the premiums and the loan servicer remits the premiums to the insurance company. The LPI policies were issued by American Security Insurance Company, Voyager Indemnity Insurance Company, Standard Guaranty Insurance Company, or another insurance company. The complaint alleged that SLS placed LPI in a manner that allowed SLS to receive kickbacks from the insurance company and that the premiums were therefore higher than they should have been. 

Docket Number:

17-cv-06668

Company: Specialized Loan Servicing LLC

Filing Deadline: July 1, 2019

Class Period: January 1, 2011 to October 31, 2018

Objection Deadline: March 2, 2019

Exclusion Deadline: March 2, 2019

Final Approval Hearing: April 1, 2019

Proof of Purchase:

Presumably the company’s records will be used for verification.

Eligibility:

You may be eligible if

  • You are a borrower in the US who
  • Between January 1, 2011 and October 31, 2018,
  • Were charged by SLS for a hazard, flood, flood gap, or wind-only LPI policy for a residential property,
  • Who, within the above period, either (a) paid to SLS at least a portion of the net premium for the policy or (b) did not pay to SLS the net premium and still owe SLS for it.

You are not eligible if (a) the LPI policy was cancelled in its entirety and all premiums were refunded to you or your escrow account, or (b) since the issuance of the policy, you have filed Chapter 7 bankruptcy petition that compromised or discharged the indebtedness on the residential property.

Typical Settlement Amount:

Cash payment or credit of 3% to 6% of the net premium paid for the insurance during the class period: 6% if you were charged between January 1, 2011 and July 30, 2015; 3% if you were charged between August 1, 2015 and October 31, 2018. Cash award if you paid the premiums; insurance account credit if you still owe them.

Total Settlement Amount: Unknown

Class Representative Proposed Incentive Fee:

$5,000

Law Firm:
Moskowitz Law Firm PLLC

Claim Form: Specialized Loan Servicing Lender-Placed Insurance Settlement Claim Form

Case Name: Smith v. Specialized Loan Servicing, LLC, et al.

Settlement Website: Specialized Loan Servicing Lender-Placed Insurance Settlement Website

Claims Administrator:
Rust Consulting, Inc.

Claims Administrator Contact Information:

Smith v SLS Administrator
c/o Rust Consulting – 6288
PO Box 44
Minneapolis, MN 55440-0044
1-877-625-9420

Tags: Forced Placed Insurance, Homeowners Insurance, Insurance, Kickbacks