The New York Times today published an article on the high cost of forced placed insurance. I’ve recently seen this problem appearing in the lives of my clients here in Tallahassee. I’m presently defending two mortgage foreclosures where the lenders placed insurance on property where the homeowner already had insurance property insurance. I find it curious that in both cases the homeowner was either elderly or disabled, which I feel makes this an especially predatory act.
According to the article, and information contained on the Consumer Financial Protection Bureau’s (CFPB) website, it appears that the CFPB is proposing new rules for mortgage servicers that would help to protect consumers from this practice. Based upon my observations with my clients, the proposed rules are needed to contain this abusive practice.