Florida Realtors

Florida Realtors

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Steven V.

Steven

Bank of America Corp. must face claims by homeowners that it took kickbacks from private insurers, a judge ruled.

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  • April 16, 2013
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  • David B.

    David

    David B.

    Brewer, Sahm & Webb, Realtors & Appraisers

    So Steven, what is most upsetting to you in this poorly written article by Ms. Pearson in Bloomberg News? What kind of insurance is the subject of the charges? Sounds like it might be the mortgage insurance that is to protect the lender, BoA, in the case of a mortgage loan default. Is that your take on this or do you read some other meaning?

  • Steven V.

    Steven

    Steven V.

    Public Insurance Adjuster Representing You and Your Clients (www.advocateclaims.com)

    David, When borrowers let their insurance policy lapse, their lender puts what is known as forced place insurance on the property to protect the lender. The cost of this insurance is many times (30-50%) more expensive, and offers less coverage then what could have been purchased by the borrower. Kickbacks of large commissions were offered to the lenders from the insurance carriers, taking advantage of unsuspecting consumers. As a public adjuster if I take any money over $25 it is a third degree felony. I would probably loose my license and could be prosecuted. Yet the insurance companies got a small slap on the wrist. No one will be prosecuted, no one will loose their license! This is outrageous behavior on the part of the insurance industry!

  • David B.

    David

    David B.

    Brewer, Sahm & Webb, Realtors & Appraisers

    From your response, I can only assume that you believe the Buyer/Borrower has no obligation to secure their own homeowner's insurance.

  • Jean V.

    Jean

    Jean V.

    Real Estate Consultant at Jones & Co Realty

    David, I feel kickbacks for overpriced insurance that will be eventually charged back to the homeowner should be scrutinized. The overall idea is, is it fair to charge so much? The homeowner in hardship may be there due to loss of job, income or medical reasons. So, you are saying that because of that, they should have no say in that the policy to insure only the outside of the home for 30-50% more than is is is worth? And the bank is profiting from it?

  • Victoria G.

    Victoria

    Victoria G.

    RE/MAX Sterling Real Estate Sales Associate

    And you are surprised??

  • Paula J.

    Paula

    Paula J.

    Dotloop - Enterprise/Strategic Accounts Team

    Imagine that!

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