In a case involving a reverse mortgage which fell into foreclosure proceedings, a lender purchased forced-placed insurance on the property. After the borrower brought her account current and the foreclosure complaint was dismissed, she sued the lender and the insurance intermediary for RESPA violations.
The borrower alleged to a Florida district court that the force-placed rates charged were not bona fide and reasonable under RESPA because the procedure for obtaining the rates violated state regulations.
Read on for the ruling and reaction from one of the attorneys involved in the case.
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