The RoundPoint Mortgage Company agreed to pay compensation amount to consumers\u2019 for their LPI policy net premium charges.<\/p>\n
There was a case filed by plaintiff against them for illegal kickbacks from LPI policy. However, the settlement will resolve the claims against the mortgage company.<\/p>\n
According to the claim the company received illegal kickbacks by implementing LPI policies through the Great American E&S Insurance Company.<\/p>\n
All the LPI policies were implemented by the mortgage companies when the homeowners\u2019 insurance not covers under the mortgage terms and conditions. Also, it implemented on homeowner\u2019s if their insurance policy lapses.<\/p>\n
These insurance policies allow the RoundPoint mortgage to ensure the proper coverage of houses. The coverage includes the natural hazard like the flood, flood gap, and theft, fire along with other specialized insurances.<\/p>\n
However, the RoundPoint allegedly charged LPI premiums in such a way that allowed them to collect an unauthorized benefit from consumers\u2019.<\/p>\n
Under the class action settlement, the RoundPoint has agreed to pay 6.75 percent of the net premiums they charged to their consumers.<\/p>\n
But, this amount will vary according to the premium and number of Class Members. The Class Members are eligible for a claim under the settlement. The eligible Class Members include consumers who were charged a total premium under an LPI policy or who had paid the premium or still owe the premium. It also includes the one who made a payment and those who did not will receive a credit on their account.<\/p>\n
Further, the eligible Class Members have time until May 13, 2019, to submit a valid claim form and to receive the compensation money.<\/p>\n
The class counsel asks the defendants for pay up to $406,865 for court costs and attorneys\u2019 fees. Plaintiff Adam Belanger will receive a $5,000 service award.<\/p>\n
By settling claims, the RoundPoint Mortgage does not admit any wrongdoing. But, ready to settle the case to save from unwanted amount for litigation.<\/p>\n
Individuals who were charged by RoundPoint Mortgage Servicing Corporation under an LPI Policy for Residential Property between Nov. 1, 2012, and Oct. 12, 2018, and either paid the net premium for that policy or still owe the net premium for that policy.<\/p>\n
6.75 percent of the net premium charged under the LPI policy.<\/p>\n
5\/13\/2019<\/p>\n