Judge Tosses Suit Over Wells Fargo Force-Placed Insurance

Law360, New York (October 31, 2012, 3:38 PM EDT) -- A California federal judge on Tuesday dismissed a putative class action accusing Wells Fargo & Co. of receiving kickbacks as part of a scheme to force mortgage borrowers to maintain excessive flood insurance on their homes, but allowed the plaintiffs to amend some of their claims.

Granting Wells Fargo’s motion to dismiss, U.S District Judge Joseph S. Spero said the bank’s requirement for the plaintiffs — five homeowners with Wells Fargo mortgages — to maintain flood insurance for the full replacement cost value of their homes...
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