Florida Federal Judge 'Green-Lights' Force Placed Insurance Class Action Suit Against Wells Fargo, QBE

American Banker reports:

• A class action just approved in federal court involving force-placed insurance(1) increases the likely cost to banks in terms of reputational damage and cash settlements.

For more, see Wells Fargo's Force-Placed Suit Raises Financial, Regulatory Threats.

For an earlier post on this story, see South Florida Homeowners Seek Class Action Status In Lawsuit Tagging Loan Servicer Over Dubious, Force-Placed Insurance 'Gravy Train'.

(1) For more on the banksters' force placed insurance racket, see:

• Ties to Insurers Could Land Mortgage Servicers in More Trouble (When banks buy insurance on the homes of borrowers whose policies have lapsed, they get a great deal. Just not for the homeowners and investors who have to pay for it),
• Losses from Force-Placed Insurance Are Beginning to Rankle Investors,
• New Questions about Banks' Force-Placed Insurance Deals (QBE, carrier used by Wells Fargo and SunTrust, avoids oversight through 'surplus lines' structure),
• South Florida Homeowners Seek Class Action Status In Lawsuit Tagging Loan Servicer Over Dubious, Force-Placed Insurance 'Gravy Train',
• The Continuing Force-Placed Insurance Squeeze,
• Loan Servicers' Force-Placed Insurance Racket Targeted By State AG Settlement Offer,
• BofA's Force-Placed Insurance Unit Hid Foreclosure Information, Say E-Mails Released By Hacker Group,
• GAO Review request in connection with the USA v. Fairbanks litigation. Exhibit T (see page 2), Exhibit U, and Exhibit V will show that HUD-OIG and, therefore, the FTC, US Attorney General's Office, etc. knew about force placed insurance, alleged kickbacks, etc. at least as far back as 2003 (courtesy of GetDShirtz.com).