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(EMAILWIRE.COM, February 09, 2012 ) New York, NY – The private mortgage insurance lawyers working with Class Action.org would like to hear from anyone who was required to buy private mortgage insurance (PMI) in connection with the purchase of their home. They are investigating whether certain home lenders worked with PMI companies to take advantage of the money their borrowers paid out in premiums to PMI companies and whether these companies are paying kickbacks to the lenders. This alleged practice could be skirting private mortgage insurance laws, and as a result, some homebuyers who were forced to buy PMI may be entitled to compensation. To find out if you are eligible, visit http://www.classaction.org/private-mortgage-insurance.html for a free case review.
When a homebuyer’s down payment on a house equals less than 20% of the selling price or appraised sale value, most lenders will require that they obtain private mortgage insurance. This will allow a homebuyer to obtain a mortgage with a lower down payment, because the lender becomes protected against any default on the loan. However, according to allegations, some lenders have schemed with PMI companies to establish their own affiliated reinsurers to take advantage of the hundreds of millions of dollars their borrowers have to pay to private mortgage insurers in premiums every year. In accordance with this alleged plot, each PMI insurer pays a share of the borrowers’ insurance premiums to the lender’s captive reinsurance subsidiary in the form of purported “reinsurance premiums.” This money is supposedly for reinsurance services; however, it is believed that these payments are received by the lender’s captive reinsurer which assumed little to no risk under its contracts with the private mortgage insurer.
This alleged practice may circumvent RESPAÂ’s strict prohibition against kickbacks, referral payments and unearned fee splits, and result in unjust enrichment to the lenders. As a result, borrowers who were affected by such practices may be entitled to compensation. If you were required to purchase PMI in connection with the purchase of your home, visit Class Action.org to find out if you have legal recourse for your PMI. The private mortgage insurance law attorneys working with the site are providing this online consultation at no cost and with no obligation.
About Class Action.org
Class Action.org is dedicated to protecting consumers and investors in class actions and complex litigation throughout the United States. Class Action.org keeps consumers informed about product alerts, recalls, and emerging litigation and helps them take action against the manufacturers of defective products, drugs, and medical devices. Information about consumer fraud issues and environmental hazards is also available on the site. Visit http://www.classaction.org today for a no cost, no obligation case evaluation and information about your consumer rights.
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