JPMorgan Units Hit With Force-Placed Policy Action

Law360, New York (June 27, 2011, 2:44 PM ET) -- Two JPMorgan Chase & Co. subsidiaries were accused in a putative class action filed in California on June 20 of breaching mortgage contracts with borrowers and taking improper kickbacks when imposing so-called force-placed hazard insurance policies.

Named plaintiff Patricia McNeary-Calloway contends that when borrowers fail to maintain their hazard insurance policies, defendants JPMorgan Chase Bank NA and Chase Bank USA NA often replace those policies with new ones that are not only more expensive and provide less coverage, but also generate “lucrative financial benefits to services...
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