A New York probe has brought national attention to banks' alleged self-dealing in the sale of force-placed insurance. But the investigation is just one of many looming challenges to the practice.
A coalition of state attorneys general is targeting force-placed insurance as part of a broader prospective mortgage-servicing settlement. Separately, proliferating class-action suits are churning out awkward-to-explain details of banks' business practices. And a Housing and Urban Development enforcement attorney who looked into alleged kickbacks paid to banks by insurers has landed at the newly empowered Consumer Financial Protection Bureau.