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#1845157 - 08/22/13 10:05 PM Force Placed Insurance
Ninky Offline
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Ninky
Joined: Nov 2002
Posts: 357
We do not service any loans with escrows. On occasion our foreclosure dept. has had to purchase hazard insurance for a property that we discovered was uninsured or insurance had expired. Do the new force placement rules apply in this case, or does it only apply to servicing escrowed loans?

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#1845192 - 08/23/13 11:25 AM Re: Force Placed Insurance Ninky
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,235
Galveston, TX
Sounds like force placed insurance to me unless the bank is not going to pass on the cost to the borrower.
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#1851585 - 09/12/13 06:26 PM Re: Force Placed Insurance Ninky
Still Smiling Offline
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Posts: 767
I am taging on here since my questions are also on force placed insurance rules. I have confused myself---I think.

A little background...we are a small servicer,we do escrow, Bank does not forceplace (blanket policy)but subsidiary does forceplace.

1. Are these rules different for escrowed loans as opposed to non escrowed loans?

2. If you pay the customer's premium for an existing policy (notice of cancelation recieved), are the notices to consumer still required if the account is escrowed or not escrowed? I am thinking we would not have the right to renew the policy if the customer has canceled it???

Help is very much appreciated...
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#1851618 - 09/12/13 06:51 PM Re: Force Placed Insurance Ninky
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,235
Galveston, TX
1. There is not really much difference except if your force placed insurance is less than a normal insurance policy and you are a small servicer.

2. How can you renew a policy that has been cancelled?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1851669 - 09/12/13 07:41 PM Re: Force Placed Insurance Ninky
Still Smiling Offline
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Joined: Nov 2007
Posts: 767
Thank you Randy, but would you eloborate a bit more-

1. I am thinking we would not forceplace unless the policy is cancelled (Escrowed loan)and the customer does not respond after the notice cycle. I guess I am asking if it would be handled the same way for non escrowed loans?

2. Sorry, I didn't articulate this one well at all...of course we can't renew the customer cancelled policy. On a non-escrowed loan where we have recieved notice of renewal and the customer fails to pay after the notice cycle, if you pay the customers premium and collect from them, are we required to obtain consent from the customer?
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#1851673 - 09/12/13 07:47 PM Re: Force Placed Insurance Ninky
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,235
Galveston, TX
1. In reviewing 1024.37 I really don't see any difference in the force placed insurance process - notifications, etc., based on whether or not an escrow agreement is in place.

2. if you pay the customers premium and collect from them, are we required to obtain consent from the customer?

This is going to be a matter of your loan agreement. If insurance is a requirement of the loan, consent should not be an issue.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1851682 - 09/12/13 07:58 PM Re: Force Placed Insurance Ninky
Still Smiling Offline
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Joined: Nov 2007
Posts: 767
ok thank you...
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