Law360, New York (May 30, 2012, 4:09 PM ET) -- Democratic New York Assemblywoman Barbara Clark on Tuesday introduced a bill that would bar mortgage servicers from taking "kickbacks" for providing force-placed insurance business.
Clark introduced the measure about a week after New York regulators heard testimony that the state's homeowners have been overcharged by $500 million since 2004 for force-placed insurance — policies that lenders impose when homeowners let their insurance lapse.
"The kickbacks are what make the cost of force-placed insurance so high," Bob Hunter, director of insurance for the Consumer Federation of America,...
NY Rep Calls For End To Force-Placed Insurance 'Kickbacks'
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