Chong v. New Penn Financial

Dorothy Kerr Checa Chong v. New Penn Financial, LLC, d/b/a

Welcome to the Shellpoint Mortgage Servicing Settlement Website

 

If you were charged by New Penn Financial, LLC, d/b/a Shellpoint Mortgage Servicing (“Shellpoint”) during the Class Period, as defined below, for a lender-placed insurance (“LPI”) policy for your residential property that was procured by Overby-Seawell Company on or after March 1, 2014, and you paid all or a portion of the premium for that policy to Shellpoint during that time, you could receive a cash award from a class action settlement. 

 

You are not being sued and this is not a lawsuit against you.

You do not have to pay anyone to get your settlement money, but you will be responsible for any taxes on your settlement money.


Case Summary

This contested lawsuit involves lender-placed insurance (“LPI”), which is insurance (hazard, flood, or wind) that is placed on a borrower’s property to protect the borrower and mortgage lender when the borrower’s insurance policy lapses, or when the borrower does not maintain a homeowner’s insurance policy that is acceptable to the mortgage lender. When an LPI Policy is placed pursuant to the borrower’s mortgage contract, Shellpoint pays premiums to the LPI insurer who writes the policy, and then Shellpoint charges the borrowers for those premiums.


The Plaintiffs have brought claims on behalf of all persons in the Settlement Class (as defined in Answer #5). Plaintiffs allege that when a borrower was required to have insurance for his or her property pursuant to a residential mortgage or home equity loan or line of credit, and evidence of acceptable coverage was not provided (for example, when the insurance policy did not exist or had lapsed), Shellpoint would place insurance in a manner such that Shellpoint allegedly received an unauthorized benefit. Plaintiffs allege further that Shellpoint did so primarily to receive “kickbacks” from Overby-Seawell Company Plaintiff also alleges that the way in which LPI policies were obtained and placed caused the rates and the amount of coverage to be excessive.
Shellpoint expressly denies Plaintiff’s allegations and asserts its actions were fully authorized under the mortgage instruments and by law. It expressly denies any wrongdoing and denies ever receiving an “unauthorized benefit,” “kickback,” or commission as a result of any LPI placement. Shellpoint further terminated its arrangement with Overby-Seawell Company in March 2015. There has been no court decision on the merits of this case and no finding that Shellpoint committed any wrongdoing.

Class Period means the the period from March 1, 2014 through April 4, 2019.

“LPI Policy” means a lender-placed residential hazard, flood, or wind insurance policy procured by the Overby-Seawell Company on or after March 1, 2014 and placed pursuant to a mortgage loan agreement, home equity loan agreement, or home equity line of credit serviced by Shellpoint to cover a borrower’s failure to maintain the required insurance coverage on the residential property securing the loan. 

The Court will hold a Final Approval Hearing on September 13, 2019, at 2:00 p.m., at the Paul G. Rogers Federal Building and Courthouse, 701 Clematis Street, Courtroom 2, West Palm Beach, Florida 33401 to determine whether the proposed settlement is fair, reasonable, and adequate. 

WHAT ARE MY OPTIONS

DUE DATE

DO NOTHING

If you do nothing as a Settlement Class Member, you will receive no money or credit from this Settlement. But, unless you exclude yourself from the Settlement, you will not be able to start a lawsuit or continue with a lawsuit against Defendant about the legal issues that were or could have been raised in this case, ever again. 

  

SUBMIT A CLAIM FORM

To receive a cash award or credit toward what you currently owe, you must be a Settlement Class Member and must send in a properly completed and accurate Class Action Claim Form by U.S. Mail postmarked by November 12, 2019 (as defined in the Settlement Agreement), 1 or, if a private mail carrier is used, a label reflecting that the mail date is no later than November 12, 2019 (the “Claim Deadline”). You may also submit a Claim Form on-line through the Settlement Website interactive portal no later than the Claim Deadline, provided that for those Claims requiring verification documents, scanned copies of those verification documents are uploaded to the Settlement Website with the appropriate claim number to associate the upload with the Claim. If the Court approves the Settlement and enters Judgment on the date of the Fairness Hearing and no appeal is filed, the deadline to submit a properly completed and accurate Claim Form will be November 12, 2019. 

You may submit a claim on this website by clicking here. 

For more information on how to submit a Claim Form, click here

NOV 12, 2019


OPT OUT


Even if you are a Settlement Class Member, you may opt out. If you opt out of the settlement you will not be able to get any settlement money and you cannot object to the settlement. You will keep your right to sue any of the Defendants about the claims made in this class action lawsuit and resolved by this settlement, and you will not be bound by any orders or judgments of the Court.

AUG 14, 2019


OBJECT

                                                   

You may object to or comment on all or part of the proposed Settlement if you are a Settlement Class Member and do not opt out of the Settlement. To do so, you (or your attorney on your behalf) must submit a valid objection.
To be valid, your objection must be in writing, personally signed by you, and must include: (a) the case name and number; (b) your name, address, telephone number, and, if represented by counsel, their contact information; (c) the basis for your objection; and (d) a statement of whether you intend to appear at the Fairness Hearing.

AUG 14, 2019


APPEAR AT THE FINAL APPROVAL HEARING ON SEPTEMBER 13, 2019  

                                                                                

To address the Court in person at the Final Approval Hearing, you must submit a Notice of Appearance and Intent to Present Argument with the Court, and if you require an interpreter, you must provide the name of your court approved interpreter.

                                                                                                                                                                                                                                                                                                                                                                                   

SEPT 13, 2019

                                                                   

Although the information in this website is intended to assist you, it does not replace the information contained in the Class Notice or the Settlement Agreement, both of which are available here.