Judge Trims Insurance Kickback Action Against Wells Fargo
By Abigail Rubenstein
Law360, New York (October 14, 2011, 7:53 PM ET) -- A Florida federal judge on Friday pared a putative class action accusing Wells Fargo Bank NA of getting kickbacks from QBE Insurance Group Ltd. for forcing mortgage holders whose contracts required them to have insurance to buy overpriced homeowners' insurance when their policies lapsed.
U.S. District Judge Cecilia M. Altonaga nixed claims that the bank violated the Real Estate Settlement Procedures Act and that a mortgage contract provision enabling the force-placed insurance practices was unconscionable.
However, the judge refused to dismiss the plaintiffs' state law claims...