Forced to Buy Private Mortgage Insurance?
Private Mortgage Insurance
Borrowers who were forced to buy private mortgage insurance (“PMI”) in connection with the purchase of their home may be entitled to financial compensation.
Class Action.org is investigating potential cases against numerous residential home lenders, including, just for example, Bank of America, Citigroup, JP Morgan Chase, Fifth Third Bank, PNC Bank, Wells Fargo, First Horizon Bank, M&T Bank, and many other banks, relating to their arrangements with private mortgage insurance (“PMI”) providers. We are investigating whether these lenders conspired with PMI companies in order to capitalize on the hundreds of millions of dollars their borrowers paid to the PMI companies in premiums each year, and whether the PMI companies are paying undisclosed kickbacks to the lenders in the form of purported “reinsurance” premiums. This practice may circumvent private mortgage insurance laws prohibition of kickbacks, referral payments and unearned fee splits, unjustly enriching the lenders at the borrower's expense.
If you are a borrower who was forced to buy private mortgage insurance (“PMI”) in connection with the purchase of your home, you may be entitled to financial compensation. Find out if you are eligible for compensation by completing our free case review form today.
It is alleged that lenders conspired with private mortgage insurers to create their own affiliated or “captive” reinsurers in order to capitalize on the hundreds of millions of dollars their borrowers paid to private mortgage insurers in premiums each year. Pursuant to this alleged scheme, each private mortgage insurer pays a portion of borrowers’ private mortgage insurance premiums to the lender’s captive reinsurance subsidiary in the form of purported “reinsurance” premiums. While these payments are purportedly for reinsurance services, the lender’s captive reinsurer received these payments while assuming very little or no actual risk under its contracts with the private mortgage insurers. It is alleged that this was accomplished through a secretive “pay-to-play scheme” that utilized carefully crafted “excess-of-loss” or purported “quota-share” reinsurance contracts that: (a) minimized risk exposure to bands of losses unlikely to be pierced; and (b) were intentionally designed to insulate the lender and its captive reinsurer from ever experiencing any out-of-pocket losses.
Were you forced to buy PMI? Fill out the no cost case evaluation form describing your complaint to find out if you are eligible for a potential PMI lawsuit to recover monetary damages.
Attorneys for PMI Insurance Laws
Due to the number of complaints from consumers regarding private mortgage insurance schemes, our attorneys are currently available to review claims from current and former customers who obtained mortgages or home equity lines of credit subject to private mortgage insurance. If you suspect that you have been subject to this hidden scheme 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 PMI class action, a type of lawsuit which would allow a large number of consumers the chance to collectively bring a claim against the bank in court.