Who is a Class Member
The RoundPoint Mortgage Servicing Lender-Placed Insurance Class Action Settlement includes:
“All borrowers with mortgage loans secured by property in the United States who, [beginningNovember 1, 2012 through October 12, 2018], were charged by RoundPoint under an LPI Policy* for Residential Property, and who, within the Settlement Class Period, either (i) paid to RoundPoint the Net Premium for that LPI Policy or (ii) did not pay to and still owe RoundPoint the Net Premium for that LPI Policy. ”
“LPI Policy” means
1) a lender-placed residential hazard, flood, flood-gap or wind-only insurance policy or policies issued by Great American;
2) procured by Willis of Ohio on behalf of RoundPoint; and
3) placed pursuant to a mortgage loan agreement, home equity loan agreement, or home equity line of credit serviced by RoundPoint to cover a borrower’s failure to maintain the required insurance coverage on the Residential Property securing the loan.
If you don’t qualify for this settlement, check out our database of other class action settlementsyou may be eligible for.
Settlement payments are estimated to be 6.75% percent of the net premium Class members were charged for lender-placed insurance by RoundPoint during the applicable class period.
Proof of Purchase
- You will need to provide your Claimant ID and Verification No. found on the top right corner of your Class Notice.
RoundPoint Lender-Placed Insurance Settlement Notes
- Belanger v. RoundPoint Mortgage Servicing Corporation
- Case No. 1:17-cv-23307-MGC
- Pending in the U.S. District Court for Southern District of Florida
This class action lawsuit involves lender-placed insurance (LPI), which is insurance (hazard, flood, flood gap, or wind) that is placed on a borrower’s property to protect the borrower and mortgage lender when the borrower’s insurance policy lapses or when the borrower does not maintain a homeowner’s insurance policy that is acceptable to the mortgage lender.
Founded in 2007, RoundPoint is a fully-licensed agency and non-agency subservicer for commercial banks, credit unions, mortgage companies and hedge funds. RoundPoint currently services over $75 billion worth of mortgage assets.
All mortgage lenders and servicers’ force-placed insurance schemes operate in a materially similar fashion. When a homeowner’s voluntary insurance policy lapses, the mortgage servicer force-places insurance on the property and charges the borrower inflated amounts. Borrowers are told they will be charged the cost of coverage and contract to do so, but in fact pay an amount greater than what the mortgage servicer, like RoundPoint, ultimately pays for the force-placed insurance. This is because after the servicer pays the insurer for the force-placed coverage, the insurer kicks back a percentage of the payment to the servicer or one of its affiliates. The kickback essentially provides a rebate on the cost of the insurance coverage. The benefit of that rebate is not, however, passed on to the borrower. The amounts charged to borrowers for forced-placed coverage are also inflated to cover other costs that are properly borne by the loan servicer.
Plaintiffs in the RoundPoint Lender-Placed Insurance class action lawsuit allege RoundPoint wrongfully manipulated the force-placed insurance market through collusive agreements involving kickback arrangements and other forms of improper compensation.
The complaint further claims that “during the class period, RoundPoint, Great American, and Loan Protector engaged in a pattern of unlawful and unconscionable profiteering and self-dealing in the purchase and placement of force-placed insurance coverage on behalf of RoundPoint borrowers in Florida and throughout the country. Their exclusive and collusive relationship has resulted in extraordinary profits for all the Defendants totaling in the millions of dollars.”
It is important to note that the plaintiffs do not challenge RoundPoint’s contractual right to obtain force-placed insurance to protect its interest in mortgage loans but instead challenges the manner in which RoundPoint has allegedly manipulated the force-placed insurance process to enrich itself.
RoundPoint denies these claims and assert their actions are fully authorized under the mortgage instruments and law but agreed to settle to avoid further litigation. You can view the entire agreement on the RoundPoint Lender-Placed Insurance settlement website.
Class members who wish to exclude themselves or opt-out of the settlement must do so by February 12, 2019. Class members who wish to submit a claim must do so by May 13, 2019.
- 5/13/19: Claim Form Deadline
- 2/12/19: Exclusion or Objection Deadline
- 3/14/19: Final Hearing at TBD ET* (class members do not need to attend this hearing in order to receive a slice of the settlement pie).
*Settlement Class Members who wish to speak at the hearing should check BelangerSettlementInfo.com to confirm the date and time of the Hearing.
- Mail: Belanger Settlement Administrator, c/o JND Legal Administration, PO Box 91345, Seattle, WA 98111
- Phone: 1-888-337-8272
- Email: [email protected]