Wells Fargo Says Mortgages Allow For Force-Placed Coverage

Law360, New York (May 2, 2013, 6:44 PM EDT) -- Wells Fargo Bank NA sought Wednesday to toss a proposed class action accusing the bank of wrongfully forcing insurance on mortgage holders and receiving kickbacks, arguing that the mortgage policies explicitly allow it to step in to assure continuous insurance coverage.

The bank argued that plaintiff Wayne Miller allowed hazard insurance coverage of his home to lapse, setting in motion Wells Fargo's placement of another policy to ensure that the property was protected, according to a motion filed in New York federal court. Though Miller acknowledged...
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