PHH Hit With Hazard Insurance RESPA Class Action

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...
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