January 2012 Entries
The New York state's financial regulator is probing several large
banks, including Bank of America Corp and Citigroup Inc, on
whether they overcharged customers on force-place insurance, a
source familiar with the matter said. The probe centers on
so-called force-place insurance -- where the loan servicer steps
in and buys an insurance policy in the event of a homeowner
failing to keep up their insurance premiums -- an increasingly
common practice, the source said. JPMorgan Chase & Co and Wells
Fargo & Co are among the other major banks involved in the
inquiry by the office of Benjamin Lawsky, the superintendent of
New York State's Department of Financial Services, the...