GMAC Required Excess Flood Insurance For Condos: Suit

Law360, New York (August 15, 2011, 5:01 PM EDT) -- GMAC Mortgage LLC was hit with a proposed class action Friday in Pennsylvania claiming it forced condominium owners to purchase excess flood insurance beyond what was required by federal law, breaching mortgage contracts and violating New Jersey consumer protection laws.

Elizabeth Cronk, who owns a condominium in Seacaucus, N.J., claims GMAC routinely purchases excess flood insurance for owners of individual units and forces them to pay the premiums by tacking them onto their credit line balance.

“As a result, a condominium owner has no choice but...
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