A class of homeowners sued JPMorgan Chase & Co. affiliates
JPMorgan Chase Bank NA and Chase Insurance Agency Inc. in New York
on Thursday, accusing them of forcing homeowners to buy more flood
insurance than they needed.
Chase Bank, as the loans' servicer, has forced homeowners with
mortgages it services too buy more flood insurance than the
government or their actual lenders require or than is necessary to
protect the lender's interest in the unpaid principal loan balance,
the complaint alleges.
The named plaintiff, Mathew Scheetz, has a loan with Fannie Mae
that is serviced by Chase and meets Fannie Mae's flood insurance
requirements, the complaint said.
But Chase has used a "highly automated" scheme to force Scheetz
and other class members to buy more expensive insurance, according
to the complaint.
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