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

Welcome to the Sekula LPI Settlement Website

Important Update: The Court granted final approval of the Sekula LPI Settlement and entered its Amended Order Granting Final Approval on January 26, 2018. Pursuant to the Settlement Agreement, cash payments were mailed to eligible Class Members in September 2018.

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 have filed  a Claim Form. Your Claim Form must have been postmarked or submitted online no later than March 28, 2018.

Your Other Options

If you did not want to be legally bound by the settlement, you had the option to exclude yourself by December 13, 2017. If you requested 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 had the option to 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 held 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. The Court considered any valid and timely objections. As explained in the detailed notice, you had the option to attend the hearing, either yourself or through an attorney hired by you, but you didn't have to. The Court granted final approval of the settlement on January 26, 2018.

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 (EXPIRED) Class Member Opt-Out Deadline
December 13, 2017 (EXPIRED) Class Member Objection Deadline
December 13, 2017 (EXPIRED) Notice to Appear Deadline
January 22, 2018, 9:30 a.m. EST Final Approval Hearing (Amended Order Granting Final Approval entered January 26, 2018)
March 28, 2018 (EXPIRED) 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