Magistrate: Wells Fargo's Flood Insurance Practices Comply With Law, Contracts

SAN FRANCISCO - A California federal magistrate judge on Oct. 30 found that a group of homeowners' claims that their mortgagee improperly forced them to maintain excessive flood insurance coverage failed because both the respective deeds of trust and federal law permit a lender to require flood insurance equal to the replacement cost value (RCV) of a home (Clifford McKenzie, et al. v. Wells Fargo Home Mortgage Inc.,  No. 3:11-cv-04965, N.D. Calif.; 2012 U.S. Dist. LEXIS 155480).

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