JPMorgan Chase & Co. (JPM) was sued by a homeowner who accused the bank of forcing the holders of mortgages it services to pay for “excessive amounts of flood insurance coverage.”
Mathew Scheetz, of Fort Collins, Colorado, sued the bank yesterday in federal court in Manhattan. He is seeking to represent a nationwide class of mortgage borrowers and asked for unspecified damages.
The suit follows the announcement by New York state regulators into rates for so-called force-placed insurance, which is taken out on homes by banks or mortgage servicers when, for example, a homeowner’s policy lapses or the bank decides the borrower doesn’t have enough coverage.
The case is Scheetz v. JPMorgan Chase Bank, 12-cv-4113, U.S. District Court, Southern District of New York (Manhattan).
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