Who is a Class Member
Members of the Seterus PMI Termination Class Action Settlement include “all borrowers in Illinois, Indiana, who, between October 1, 2013 and October 1, 2016: (1) had Modified Loans serviced by Seterus; (2) qualified for automatic termination of their PMI based on the Original Value; and (3) paid PMI premiums after they qualified for automatic termination based on the Original Value.”
If you don’t qualify for this settlement, check out our database of other class action settlementsyou may be eligible for.
Class members who do not exclude themselves from the settlement will receive a check for 68% of the PMI premiums they paid between the actual date on which PMI terminated and the date on which PMI would have terminated based on the Original Value.
Proof of Purchase
Seterus PMI Termination Settlement Notes
- Ciolino v. Seterus, Inc.
- Case No. 15-cv-9247
- Pending in the U.S. District Court for the Northern District of Illinois, Eastern Division
In October 2015, plaintiff Patrick Ciolino filed this class action lawsuit alleging that Seterus incorrectly calculated the automatic termination date of PMI for homeowners whose loans has previously been modified. Specifically, Ciolino contends that Seterus calculations were based on the value of the property at the later of the loan’s origination, the most recent refinance (Original Value). These actions, the lawsuit claims, are in direct violation of the federal Homeowner’s Protection Act.
According to court documents, Seterus used a computer program which calculated new PMI automatic termination formulas using a modified property value, instead of the original property value, but never disclosed this fact to Ciolino or other impacted borrowers, up until October, 2016, when it changed its practices. In Ciolino’s case, that resulted in the PMI automatic termination date being extended from late 2013 to March, 2023!
The lawsuit goes on to state that Seterus never informed Ciolino of the new PMI automatic termination date, and Seterus never provided him with a new amortization schedule after his loan was modified. When he complained that he was still being charged PMI in the summer of 2015, Seterus informed him he had to wait until the “estimated midpoint” of his loan, or pay a $350 appraisal fee in order to prove Seterus was obligated to terminate his PMI. It did not provide him with any information regarding the new PMI automatic termination date for his loan, nor did it inform him how it was calculating that date.
“On information and belief, based on industry practice, Seterus has a financial incentive to continue the PMI on plaintiff’s loan because it receives a portion of the premium and it desires the protection provided by PMI to lenders,” the complaint reads.
Seterus denies the allegations and says they no longer uses the Modified Value to calculate automatic PMI termination unless the use of the Modified Value is a condition of the applicable loan modification agreement. Complete details are provided in the Settlement Agreement. The Settlement Agreement and other related documents are available on the Seterus PMI Termination Settlement website.
Class members who wish to exclude themselves or object to the terms of the Seterus PMI Termination Settlement must do so in writing; your request must be postmarked by April 3, 2018 and received by the Settlement Administrator by April 13, 2018. Class members who wish to receive a payment do not need to do anything.
- 4/3/18: Objection or Exclusion Deadline
- 5/10/18: Final Hearing at 9:30 am CT* (class members do not need to attend this hearing in order to receive a slice of the settlement pie).
*Settlement Class Members who wish to speak at the hearing should check www.PMITerminationSettlement.com to confirm that the date or time of the Hearing has not been changed.
- Mail: First Class, Inc./ J13710-Ciolino, 5410 W. Roosevelt Rd., Ste. 222, Chicago, Illinois 60644-1490
- Phone: 1-844-452-7994
- Email: firstname.lastname@example.org (Class Counsel)
- Daniel A. Edelson and Tara Goodwin of Edelman Combs Latturner & Goodwin LLC