Strickland, et al., v. Carrington Mortgage Services, LLC, et al.
Sekula LPI Settlement

Welcome to the Sekula LPI Settlement Website

If you were charged by Residential Credit Solutions, Inc. for a lender-placed insurance policy for your residential property, you could receive a cash award from a class action settlement.

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A settlement has been reached in a class action lawsuit involving lender-placed insurance (“LPI”) charged by Residential Credit Solutions, Inc. (“RCS”) and issued by Southwest Business Corporation, American Modern Insurance Group, Inc., or one of its affiliates (collectively the “Insurer Defendants”), between January 1, 2008 and August 9, 2017. The lawsuit alleges that when a borrower was required to have insurance for his or her property under a residential mortgage or home equity loan or line of credit, and evidence of acceptable coverage was not provided, RCS would place insurance in a manner such that RCS allegedly received an unauthorized benefit. Insurer Defendants expressly deny the allegations in the lawsuit. The Court has not decided who is right or that Insurer Defendants did anything wrong.

What Is LPI?

LPI is lender-placed insurance (hazard, flood, flood-gap, or wind) that is placed on a borrower’s property to protect the borrower and mortgage lender when the borrower’s voluntary homeowner’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, RCS pays premiums to the LPI insurer who writes the policy, and then RCS charges the borrower for those premiums.

Who Is Included?

The RCS Settlement Class includes all borrowers in the United States who were charged by RCS for a hazard, flood, flood-gap, or wind LPI policy issued by the Insurer Defendants for residential property, between January 1, 2008 and August 9, 2017, and who either (i) paid to RCS part or all of the net premium for that LPI policy or (ii) did not pay to and still owe RCS the net premium for that LPI policy.

What Are the Settlement Terms?

Insurer Defendants have agreed to pay a cash award of 6% of the net premium that RCS charged to a Claimant during the settlement class period for the LPI policy. How the amount of the cash award is determined is explained in a detailed notice available on the Important Documents page.

In order to receive a cash award, you must file a Claim Form. If you are an RCS Settlement Class member and did not receive one, you can download a Claim Form on the Important Documents page, or call 1-844-470-7978 and request that one be mailed to you. Your Claim Form must be postmarked or submitted on the Online Claim Filing page no later than March 28, 2018.

Your Other Options

If you do not want to be legally bound by the settlement, you must exclude yourself by December 13, 2017. If you request exclusion, you are not entitled to send in a Claim Form to ask for any money, but may sue or continue to sue the Insurer Defendants about the claims resolved in this settlement. You also may object to the settlement by December 13, 2017. A detailed notice available on the Important Documents page explains how to exclude yourself or object.

The Court will hold a hearing on January 22, 2018 to consider whether to approve the settlement and class counsel’s request for attorneys’ fees and expenses up to $722,837, and case contribution awards to the Settling Plaintiffs. If there are valid and timely objections, the Court will consider them. As explained in the detailed notice, you may attend the hearing, either yourself or through an attorney hired by you, but you don’t have to.

Key Dates

The key dates below reflect important dates and deadlines in connection with this class action. Please be sure to review these dates and take any appropriate steps necessary before these deadlines pass.

Date/Deadline Event
December 13, 2017 (postmarked) Class Member Opt-Out Deadline
December 13, 2017 (filed) Class Member Objection Deadline
December 13, 2017 (filed) Notice to Appear Deadline
January 22, 2018, 9:30 a.m. EST Final Approval Hearing
March 28, 2018 (postmarked/submitted) Class Member Claim Form Deadline

For More Information

Visit this website often to get the most up-to-date information.


Sekula LPI Settlement
PO Box 6878
Broomfield, CO 80021