Federal judge Moreno tosses suit against banks that forced homeowners to buy insurance

March 18, 2013

The five largest U.S. banks have scored a victory in a proposed class action that claimed the banks force homeowners to buy overpriced homeowner insurance if they allowed their old policies to expire. The practice of force-placed insurance has been under scrutiny as homeowners sue their mortgage lenders for imposing policies that are far more expensive than market rates.