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#1914903 - 04/16/14 02:53 PM Closing a Loan with Force Placed Insurance
terpsfan Offline
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A customer's loan has matured and we are willing to refinance but the customer is unable to get insurance. Can we force place insurance at closing and if so how would the notice work? I also have a concern that if we are offering this option to the customer that we are acting as a insurance agent and are not license to sell this type of insurance.
Last edited by terpsfan; 04/16/14 03:49 PM.
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#1914913 - 04/16/14 02:58 PM Re: Closing a Loan with Force Placed Insurance terpsfan
ComplianceNerd Offline
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Is this flood insurance?
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#1914955 - 04/16/14 03:35 PM Re: Closing a Loan with Force Placed Insurance terpsfan
terpsfan Offline
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No just hazard insurance

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#1914998 - 04/16/14 04:26 PM Re: Closing a Loan with Force Placed Insurance terpsfan
#Just Jay Offline
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I'd be very concerned why the borrower cannot obtain insurance on their own.
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#1915040 - 04/16/14 05:51 PM Re: Closing a Loan with Force Placed Insurance terpsfan
terpsfan Offline
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The only other option would be to foreclose since it is matured.

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#1915544 - 04/17/14 09:52 PM Re: Closing a Loan with Force Placed Insurance terpsfan
#Just Jay Offline
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Why are they unable is a better question. Can they not afford the insurance premium, or are they or the home not insurable?
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#1915646 - 04/18/14 01:41 PM Re: Closing a Loan with Force Placed Insurance terpsfan
terpsfan Offline
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The home is not insurable.

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#1915662 - 04/18/14 01:56 PM Re: Closing a Loan with Force Placed Insurance terpsfan
ComplianceNerd Offline
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Well how do you get insurance on an uninsurable piece of property?
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#1915767 - 04/18/14 03:41 PM Re: Closing a Loan with Force Placed Insurance terpsfan
terpsfan Offline
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Our force placed insurance company will issue it.

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#1915770 - 04/18/14 03:41 PM Re: Closing a Loan with Force Placed Insurance terpsfan
terpsfan Offline
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But I am afraid that if we offer this to them we are acting as an insurance agent and we are not licensed for selling hazard insurance.

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#1915904 - 04/18/14 06:33 PM Re: Closing a Loan with Force Placed Insurance terpsfan
rlcarey Online
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Originally Posted By: terpsfan
But I am afraid that if we offer this to them we are acting as an insurance agent and we are not licensed for selling hazard insurance.


That is a State insurance question and only your State insurance licensing/enforcement agency can answer that question.
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