Law360, Washington (February 27, 2012, 8:03 PM ET) -- A homeowner slapped mortgage services company PHH Corp. with a putative class action in New Jersey federal court Friday, alleging the company, already under regulatory scrutiny, has engaged in abusive and unfair practices including kickbacks in its force-placed hazard insurance business.
Patrick Gallo is challenging PHH subsidiary PHH Mortgage Corp.'s practice of purchasing force-placed hazard insurance from a provider in arrangements where PHH benefits financially without any contractual or other bona fide interest in protecting PHH’s interest in the loan, according to his complaint.
Such payments...
PHH Hit With Hazard Insurance RESPA Class Action
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