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#1719543 - 07/12/12 07:17 PM Hazard insurance on 2nd mortgage GFE
Kiki9895 Offline
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Joined: May 2012
Posts: 16
Is hazard insurance required to be listed on the GFE on a 2nd mortgage?

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Lending Compliance
#1719545 - 07/12/12 07:22 PM Re: Hazard insurance on 2nd mortgage GFE Kiki9895
KPOC Offline
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Greater Boston Area
RESPA FAQs (April 2, 2010):

Q: How should Block 11 be completed in a refinance where the new lender is requiring the borrower to maintain his or her existing hazard and flood insurance?
A: If a borrower is refinancing the mortgage on his or her home and the new lender is requiring the borrower to maintain the existing hazard and flood insurance policies on the home, Block 11 may be completed with $0.

I know you are specifically asking about second liens, but it seems the same logic would apply. The borrower should already have homeowners and therefore would not need to pay an additional upfront premium.

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#1719552 - 07/12/12 07:25 PM Re: Hazard insurance on 2nd mortgage GFE Kiki9895
raitchjay Online
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Joined: Oct 2009
Posts: 9,111
OK
I agree. I think a RESPA Roundup (or maybe another FAQ?) did specifically address 2nd liens and came to the same concusion that KPOC states.
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