SunTrust Can't Duck Force-Placed Insurance Kickback Claim

Law360, New York (March 26, 2014, 5:43 PM EDT) -- A Florida federal judge on Tuesday kept intact a class action accusing SunTrust Mortgage Inc. of reaping kickbacks in exchange for force-placing overpriced QBE Specialty Insurance Co. hazard policies, ruling that mortgagors are not precluded from suing by their own breaches of contract.

U.S. District Judge James I. Cohn determined that a mortgagor's admitted failure to live up to the terms of a loan by allowing hazard coverage to lapse or by defaulting on payments does not excuse the bank’s subsequent alleged contract breaches.

In their...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.