On September 24, the Court of Appeals for the Eleventh Circuit
in Patel v. Specialized Loan Servicing, LLC ruled that a
group of plaintiffs from Florida and Pennsylvania could not
challenge the forced-placed insurance ("FPI") rate their
mortgage servicers charged. Because the plaintiffs did not purchase
homeowner's insurance, the mortgage servicers purchased FPI for
the properties through American Security Insurance Company
("ASIC"). The plaintiffs alleged that the mortgage
lenders received "rebates" or "kickbacks" from
ASIC and brought claims for breach of contract and unjust
enrichment, as well as for alleged violations of the Truth in
Lending Act, the Racketeer Influenced and Corrupt Organizations
Act, and the Florida Deceptive and Unfair Trade Practices Act.
