GMAC Force-Placed Insurance Class Action Gets Judge's OK

Law360, New York (September 30, 2013, 6:31 PM EDT) -- A New York federal judge on Monday upheld a racketeering class action targeting kickbacks Balboa Insurance Co. allegedly paid to GMAC Mortgage LLC for force-placing hazard insurance policies, saying the lender may have gouged borrowers when demanding reimbursement for coverage.

U.S. District Judge Alison J. Nathan greenlit claims from a putative class of homeowners that GMAC broke federal racketeering laws by billing for the full cost of force-placed insurance policies it purchased despite secretly receiving mortgage tracking services from a Balboa affiliate for free. As the...
To view the full article, register now.