QBE’s US mortgage business QBE First has named Christopher “CD” Davies as its new CEO.

He replaces Bill Krochalis, who founded Sterling National, the company that was taken over by QBE and renamed QBE First.

The mortgage business is facing a class action over “force-placed insurance,” where a bank lender takes out an insurance policy to protect a home when the borrower has allowed their insurance to lapse, and then passes on the cost to the homeowner.

About 20,000 plaintiffs could be affected by the action against QBE and Wells Fargo bank, which concerns commissions and the cost of the insurance.

Mr Davies was previously president of the home loans division of US bank Capital One, where he integrated the mortgage business of Chevy Chase Bank and was involved with the acquisition of ING Direct.

QBE North America CEO John Rumpler says Mr Davies is a strong and respected leader in the financial services industry with more than 24 years of mortgage experience.

Mr Krochalis left QBE First in December.