A report released this morning by the FHFA Inspector General recommends that the FHFA complete an assessment of whether or not to sue servicers and insurers in the Lender-Placed business.
From the report:
“We recommend that FHFA assess the merits of litigation by the Enterprises against their servicers and LPI providers to remedy potential damages caused by past abuses in the LPI market and, then, take appropriate action in this regard.
“FHFA accepted this recommendation (see Appendix A). As noted in its formal response, the Agency will complete its litigation assessment within 12 months.”
Read the FHFA report.
ABA/ABIA will continue to follow these developments and will engage in further discussions with FHFA. The ABIA has a Task Force of members that work on Lender-Placed Insurance issues. If you are an ABIA member and would like to learn more about ABIA's work on LPI, please contact us and visit our website.