today i recevied a bill that flood ins was add to by policy from chase home finance what is this all about
Total Comments: 28
Posted: Mon Nov 22, 2010 01:05 am Post Subject:
Are they crazy. I think they are trying to scam me. I think chase is hoping I didn't notice to letter. And, bam right at Christmas time just and it to my 34 months left loan.
The timing may be poor, but you can't blame Chase specifically for this. If your loan was with Bank of America, Citibank, Wells Fargo, or virtually any other federally-regulated lending institution, the exact same thing would be true. And it's actually been a requirement since 1973.
But today's vigorously stepped-up enforcement by the banks? Chalk this one up, SPECIFICALLY, to the Bush/Obama bailouts of the financial sector and TARP. All federally-insured banks and most other lending institutions are required to do this with their loan portfolios, and they can be severely punished for noncompliance. That's also been true since 1973 when the first mandatory coverage requirements were passed.
Federally regulated lending institutions often were relaxed in complying with the mandatory purchase provision without the sanction of a penalty.
2007 NFIP Mandatory Purchase of Flood Insurance Guidelines. http://www.fema.gov/good_guidance/download/10040
Except the government was also "relaxed" in its pursuit of noncompliance. Things have changed in the aftermath of the most recent round of financial services companies' bailouts.
Also from the official NFIP website, http://floodsmart.gov
What to Expect
Congress mandated federally regulated or insured lenders to require flood insurance on properties that are located in areas at high risk of flooding.
Below you'll find the insurance requirements for your flood risk area. If you're not sure which area your property is in, take your Risk Profile to learn more.
Residents of High-Risk Areas
Homes and buildings in high-risk flood areas with mortgages from federally regulated or insured lenders are required to have flood insurance. These areas have a 1% or greater chance of flooding in any given year, which is equivalent to a 26% chance of flooding during a 30-year mortgage.
Residents of Moderate-to-Low Risk Areas
Homes and businesses located in moderate-to-low risk areas that have mortgages from federally regulated or insured lenders are typically not required to have flood insurance. However, flood insurance is highly recommended because 25% of all flood claims occur in moderate-to-low risk flood areas.
A lender can require flood insurance, even if it is not federally required.
So pray for a dry 34 months. But you'll also be glad you have the coverage if a flood happens any time in the next 34 months, too. It's a double-edged sword that you cannot escape as long as you have a loan from almost any source and your property is in a flood zone.
35 months from now, if you want to drop the coverage, you'll be more than welcome to do so. But you might not want to.
11/15/2010 I got another letter saying that I need to increase my flood insurance because I didn't have adequate coverage. Now they want me to get another 121,000.00 of coverage.
The maximum property coverage limit for 2011 is $250,000, so you're not being asked to insure for more than that. http://www.fema.gov/pdf/nfip/manual201010/05rate.pdf
If your dwelling's actual REPLACEMENT COST is legitimately appraised at $70,000, I don't know why you are being required to carry more coverage than its Replacement Cost -- but the lender can require just about anything it wants. Or are you just guessing at the REPLACEMENT COST of the structure? Have you actually talked to anyone at Chase, or are you only complaining about this to us and with your friends?
Posted: Mon Mar 07, 2011 08:13 pm Post Subject: flood
Bought my house 3 months ago,loan sold three times. First two lenders were ok with coverage,180.800 at 103.00 a month.Now my loan is with Wellsfargo Bank N A.
They have forced me to obtain the the max of 250,00 at 365 a month.Got a letter from FEMA,stating no claims have been filed,and bare in mind the house is 34 years old.So how is that legal or ethical for them to charge me that and how can I get it reduced?
Posted: Tue Mar 08, 2011 06:03 am Post Subject:
How much is your loan amount and what is your dwelling replacement cost? If coverage for $180,800 was $103/mo, I find it difficult to believe that coverage for $250,000 (not even 40% more coverage) would be more than triple. That simply makes no sense. Find a local property/casualty insurance agent/agency to assist you with this.
You are not required to purchase a NFIP policy through your lender. You may obtain coverage through any licensed broker or agent in your state. If Wells Fargo has added coverage to your loan, you can have it removed by providing your own purchased coverage. Premiums are based in part on the flood zone rating where your structure is located, and the replacement value of your dwelling.
You could also talk to someone at Wells Fargo concerning their requirement for $250,000. If they have already added the insurance, it most likely is the result of your failure to provide them with evidence of satisfactory coverage. While you are required to insure the property if the loan is FHA/FNMA/GNMA guaranteed, you are not required to insure beyond the replacement cost of your structure.
You can always file a complaint with your state's Dept of Insurance if you believe you are being "victimized" by Wells Fargo.
FYI -- Wells Fargo takes the position that, as a National Bank, it is only regulated by the Comptroller of the Currency, and that states cannot force it to be licensed, not limit its activities, as a lender under state law. Courts have upheld this preemption when it comes to being regulated as a lender, but I am not aware of any instance in which they have been held out as being exempt from regulation under state insurance laws. They may be engaging in an unfair business practice that is prohibited under your state's Insurance Code.
Posted: Thu May 12, 2011 11:57 pm Post Subject: Forced flood insurance Legal Scam?
I just got notified I have 45 days to buy flood insurances or Chase Bank will buy it for an even higher price than the $1,600 per year price that I've seen. Doesn't mater what the house is worth, it must be insured for the full price of the mortgage. There hasn't been any change in Fema maps since I bought my house and had my Flood Cert. We need Class Action!! I've been to my City offices they show Im Not in a flood zone. But Chase says I am! I am completely Blind sided by this. I have no choice but to make time to beat the clock on this Issue. As I know I'm not in flood zone. If I can't get a Loma this will cost me around 50k over the time of my loan! For a home that has never flooded and is not close to high risk. The flood insurance Price is now my biggest threat to losing are home.
Posted: Fri May 13, 2011 09:12 am Post Subject:
Contact your state's banking regulator, the state's Dept of Insurance, and the US Comptroller of the Currency to file complaints against Chase.
You can also contact FEMA for a determination of your property's flood-prone status and provide that to Chase to get them off your back.
Posted: Mon Feb 11, 2013 06:01 pm Post Subject: take arms
Now you see why the goverment is in such a rush to take arms.
I see something in the coming decades that may encompase insurgency here at home
Posted: Mon Feb 11, 2013 11:46 pm Post Subject:
If your home is not in a FEMA-designated flood area, Chase has no reason to add the NFIP coverage. They are permitted to do so only if the loan is federally-insured (GNMA, FNMA, Freddie Mac, FHA, or FmHA), and there has to be a provision in your loan documents that would allow them to do so.
There was a class action in 2011 against Chase over home-equity lines of credit that were executed prior to sometime in early-2010. There were actually four different classes of persons certified by the Federal District Court for Nothern California ( http://www.site.chasefloodinsurancelitigation.com/uploads/ChaseCANotice.pdf ). But I don't think your situation involves a HELOC.
Another class action filed against Chase in 2012 is pending in New York State ( http://www.bergermontague.com/media/341817/5-23-12-filed-scheetz-v-chase---flood-complaint-%282%29.pdf ) that may be closer in form to your situation. It concerns a FNMA mortgage.
If you are interested in acting as a plaintiff in a federal class action lawsuit, I may have some attorneys willing to look at your case, because this is beginning to happen all over the place. Eventually, all the cases could be consolidated into one action in one court if the issues are substantially the same. Being a lead or co-lead plaintiff gets you the most in the event of any judgment or settlement. Of course, the attorneys really get the lion's share. All the other class members usually get some kind of token amount that really doesn't compensate them for their damages. But you never know.
Please contact me by clicking on the "Send me your questions" link below.
Posted: Mon Nov 22, 2010 01:05 am Post Subject:
Are they crazy. I think they are trying to scam me. I think chase is hoping I didn't notice to letter. And, bam right at Christmas time just and it to my 34 months left loan.
The timing may be poor, but you can't blame Chase specifically for this. If your loan was with Bank of America, Citibank, Wells Fargo, or virtually any other federally-regulated lending institution, the exact same thing would be true. And it's actually been a requirement since 1973.
But today's vigorously stepped-up enforcement by the banks? Chalk this one up, SPECIFICALLY, to the Bush/Obama bailouts of the financial sector and TARP. All federally-insured banks and most other lending institutions are required to do this with their loan portfolios, and they can be severely punished for noncompliance. That's also been true since 1973 when the first mandatory coverage requirements were passed.
Federally regulated lending institutions often were relaxed in complying with the mandatory purchase provision without the sanction of a penalty.
2007 NFIP Mandatory Purchase of Flood Insurance Guidelines. http://www.fema.gov/good_guidance/download/10040Except the government was also "relaxed" in its pursuit of noncompliance. Things have changed in the aftermath of the most recent round of financial services companies' bailouts.
Also from the official NFIP website, http://floodsmart.gov
What to Expect
Congress mandated federally regulated or insured lenders to require flood insurance on properties that are located in areas at high risk of flooding.
Below you'll find the insurance requirements for your flood risk area. If you're not sure which area your property is in, take your Risk Profile to learn more.
Residents of High-Risk Areas
Homes and buildings in high-risk flood areas with mortgages from federally regulated or insured lenders are required to have flood insurance. These areas have a 1% or greater chance of flooding in any given year, which is equivalent to a 26% chance of flooding during a 30-year mortgage.
Residents of Moderate-to-Low Risk Areas
Homes and businesses located in moderate-to-low risk areas that have mortgages from federally regulated or insured lenders are typically not required to have flood insurance. However, flood insurance is highly recommended because 25% of all flood claims occur in moderate-to-low risk flood areas.
A lender can require flood insurance, even if it is not federally required.
So pray for a dry 34 months. But you'll also be glad you have the coverage if a flood happens any time in the next 34 months, too. It's a double-edged sword that you cannot escape as long as you have a loan from almost any source and your property is in a flood zone.
35 months from now, if you want to drop the coverage, you'll be more than welcome to do so. But you might not want to.
11/15/2010 I got another letter saying that I need to increase my flood insurance because I didn't have adequate coverage. Now they want me to get another 121,000.00 of coverage.
The maximum property coverage limit for 2011 is $250,000, so you're not being asked to insure for more than that. http://www.fema.gov/pdf/nfip/manual201010/05rate.pdf
If your dwelling's actual REPLACEMENT COST is legitimately appraised at $70,000, I don't know why you are being required to carry more coverage than its Replacement Cost -- but the lender can require just about anything it wants. Or are you just guessing at the REPLACEMENT COST of the structure? Have you actually talked to anyone at Chase, or are you only complaining about this to us and with your friends?
Posted: Mon Mar 07, 2011 08:13 pm Post Subject: flood
Bought my house 3 months ago,loan sold three times. First two lenders were ok with coverage,180.800 at 103.00 a month.Now my loan is with Wellsfargo Bank N A.
They have forced me to obtain the the max of 250,00 at 365 a month.Got a letter from FEMA,stating no claims have been filed,and bare in mind the house is 34 years old.So how is that legal or ethical for them to charge me that and how can I get it reduced?
Posted: Tue Mar 08, 2011 06:03 am Post Subject:
How much is your loan amount and what is your dwelling replacement cost? If coverage for $180,800 was $103/mo, I find it difficult to believe that coverage for $250,000 (not even 40% more coverage) would be more than triple. That simply makes no sense. Find a local property/casualty insurance agent/agency to assist you with this.
You are not required to purchase a NFIP policy through your lender. You may obtain coverage through any licensed broker or agent in your state. If Wells Fargo has added coverage to your loan, you can have it removed by providing your own purchased coverage. Premiums are based in part on the flood zone rating where your structure is located, and the replacement value of your dwelling.
You could also talk to someone at Wells Fargo concerning their requirement for $250,000. If they have already added the insurance, it most likely is the result of your failure to provide them with evidence of satisfactory coverage. While you are required to insure the property if the loan is FHA/FNMA/GNMA guaranteed, you are not required to insure beyond the replacement cost of your structure.
You can always file a complaint with your state's Dept of Insurance if you believe you are being "victimized" by Wells Fargo.
FYI -- Wells Fargo takes the position that, as a National Bank, it is only regulated by the Comptroller of the Currency, and that states cannot force it to be licensed, not limit its activities, as a lender under state law. Courts have upheld this preemption when it comes to being regulated as a lender, but I am not aware of any instance in which they have been held out as being exempt from regulation under state insurance laws. They may be engaging in an unfair business practice that is prohibited under your state's Insurance Code.
Posted: Thu May 12, 2011 11:57 pm Post Subject: Forced flood insurance Legal Scam?
I just got notified I have 45 days to buy flood insurances or Chase Bank will buy it for an even higher price than the $1,600 per year price that I've seen. Doesn't mater what the house is worth, it must be insured for the full price of the mortgage. There hasn't been any change in Fema maps since I bought my house and had my Flood Cert. We need Class Action!! I've been to my City offices they show Im Not in a flood zone. But Chase says I am! I am completely Blind sided by this. I have no choice but to make time to beat the clock on this Issue. As I know I'm not in flood zone. If I can't get a Loma this will cost me around 50k over the time of my loan! For a home that has never flooded and is not close to high risk. The flood insurance Price is now my biggest threat to losing are home.
Posted: Fri May 13, 2011 09:12 am Post Subject:
Contact your state's banking regulator, the state's Dept of Insurance, and the US Comptroller of the Currency to file complaints against Chase.
You can also contact FEMA for a determination of your property's flood-prone status and provide that to Chase to get them off your back.
Posted: Mon Feb 11, 2013 06:01 pm Post Subject: take arms
Now you see why the goverment is in such a rush to take arms.
I see something in the coming decades that may encompase insurgency here at home
Posted: Mon Feb 11, 2013 11:46 pm Post Subject:
If your home is not in a FEMA-designated flood area, Chase has no reason to add the NFIP coverage. They are permitted to do so only if the loan is federally-insured (GNMA, FNMA, Freddie Mac, FHA, or FmHA), and there has to be a provision in your loan documents that would allow them to do so.
There was a class action in 2011 against Chase over home-equity lines of credit that were executed prior to sometime in early-2010. There were actually four different classes of persons certified by the Federal District Court for Nothern California ( http://www.site.chasefloodinsurancelitigation.com/uploads/ChaseCANotice.pdf ). But I don't think your situation involves a HELOC.
Another class action filed against Chase in 2012 is pending in New York State ( http://www.bergermontague.com/media/341817/5-23-12-filed-scheetz-v-chase---flood-complaint-%282%29.pdf ) that may be closer in form to your situation. It concerns a FNMA mortgage.
If you are interested in acting as a plaintiff in a federal class action lawsuit, I may have some attorneys willing to look at your case, because this is beginning to happen all over the place. Eventually, all the cases could be consolidated into one action in one court if the issues are substantially the same. Being a lead or co-lead plaintiff gets you the most in the event of any judgment or settlement. Of course, the attorneys really get the lion's share. All the other class members usually get some kind of token amount that really doesn't compensate them for their damages. But you never know.
Please contact me by clicking on the "Send me your questions" link below.
Posted: Sun Sep 09, 2018 04:22 am Post Subject:
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