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#161 - 12/07/00 01:27 PM Force-placed insurance
Anonymous
Unregistered

How many days notice are we required to give when we need to force-place insurance on loans? Where is this addressed in banking regulations, or is it?

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#162 - 12/07/00 03:02 PM Re: Force-placed insurance
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,750
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I believe it is a contractual issue and a matter of "reasonable" time to cure. So long as those tests are met, and the insurance requirement is clearly stated in the contract, you'll be OK.

It has been several years since I dealt with this and I am now at the point where I can hide my own Easter eggs, so I could be forgetting something.

I assume you mean insurance on standard collateral, not RE and flood insurance. Flood has a series of letters and a specific timeline to follow.

One might assume that using that as a standard may be a good idea for other collateral.

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Andy Zavoina
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AndyZ CRCM
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#163 - 12/12/00 06:55 PM Re: Force-placed insurance
Anonymous
Unregistered

Andy is correct about flood insurance. You have to give the borrower notice in writing that they 45 days to obtain flood insurance. The flood rules are covered in regulation H. I don't know of any specific requirements related to other types of insurance, but would definitely look to the loan documents to see what the borrower agreed to.

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