Berger & Montague has filed an amended class action
complaint in the United States District Court for the Southern
District of New York alleging that Litton Loan Servicing LP, Ocwen
Financial Corporation and Goldman Sachs Group, Inc. schemed to
require their mortgage borrowers to buy force-placed (also known as
lender-placed) insurance while taking kickbacks from the insurers.
The amended complaint is available for download here.
Most lenders require mortgage borrowers to maintain hazard
insurance (often referred to as "homeowners insurance" or "fire
insurance") on the property securing the mortgage. When
borrowers either fail to obtain such a policy or the policy lapses,
then the loan servicer purchases the required insurance. When
loan servicers engage in this process, known as force-placing or
lender-placing, they frequently have preexisting relationships with
the force-placed insurance provider such that the servicer receives
kickbacks in exchange for force-placing borrowers with
extraordinarily expensive policies.
Litton Loan Servicing LP and its affiliate defendants are no
exception to this industry-wide practice that harms consumers by
charging for these excessive policies with their costs inflated by
If you obtained a home equity loan or mortgage from
Litton Loan Servicing LP or Ocwen Financial Corporation or your
mortgage loan is serviced by either entity and you were
force-placed with hazard insurance by Litton or Ocwen, you may be
entitled to financial compensation. For questions about this
case against Litton and Ocwen, please contact Shanon
J. Carson at (215) 875-4656 or by email at email@example.com. Further
information is set forth below.
Are you a current or former customer of Litton Loan Servicing LP
or Ocwen Financial Corporation? Fill out the free case review
form describing your Litton or Ocwen complaints to find out if you
have legal recourse to recover monetary damages.
Litton/Ocwen Force-Placed Insurance Class Action
Due to the number of Litton and Ocwen complaints from consumers,
our attorneys are currently available to review claims from current
and former customers who obtained mortgages or home equity lines of
credit using their home or condominium as collateral. If you
suspect that you have been subject to Litton's or Ocwen's
force-placed insurance practices described above, complete our no
cost, no obligation case review form today. At no cost to
you, our lawyers will review your claim to determine if you can
recover financial compensation through a Litton or Ocwen class
action, a type of lawsuit which would allow a large number of
consumers the chance to collectively bring a claim against the
company in court.
Berger & Montague's force-placed insurance group vigorously
represents homeowners against major banks. To find out about
investigations, as well as both pending and settled cases, please
force-placed insurance case page.