Kirby McInerney LLP Files Class Action Lawsuit Against GMAC Mortgage Alleging an Illegal ...

Beginning in March 2003, GMAC entered into an agreement to buy force-placed insurance coverage with respect to its mortgage loan servicing portfolio from Balboa. Plaintiff alleges that GMAC, as a quid pro quo for awarding Balboa its force-placed insurance business, has required Balboa to pay GM kickbacks. These kickbacks have been in the form of bogus "commissions" paid to a GMAC affiliate, "GMAC Agency Marketing," an unincorporated division and/or fictitious "doing business as" name of defendant GMAC Insurance Marketing, Inc. Plaintiff alleges that Balboa agreed to label these payments as "commissions" -- and to funnel them through GMAC Agency Marketing -- to disguise their true nature as bribes or kickbacks....