November 13th, 2016
A class action lawsuit (Johnson v. Sun West Mortgage Company, Inc., et al., Case Number BC541571, Los Angeles Superior Court, Honorable John Shepard Wiley) was filed against our client, Sun West Mortgage Company, alleging that the company, as a reverse mortgage servicer, would obtain excessively priced lender placed insurance for its borrowers in exchange for various alleged kickbacks from insurers, and allegedly improperly backdated those policies even if there was no evidence of damage to the property being insured. On behalf of Sun West, the Firm filed a motion for summary judgment as to all five claims. The Court agreed with Sun West and granted the motion in its entirety. The Court found that class plaintiff Johnson provided no evidence to support his unsubstantiated claims, and that Johnson failed to provide any evidence to support his or the class’s theories that Sun West and Proctor Financial Inc. received “kickbacks” or commissions.