We mailed the initial 45 day letter to a borrower at the beginning of November and just realized it had the incorrect required minimum coverage amount (the amount should have been less) and are a few days shy of force-placing. Do we start the 45 day letter cycle over with the correct amount or force-place according to the original date and notify the borrower with a separate letter that there was a correction?

I would not start the 45 day process over. Your only fear is that they come up with a policy of their own for the lesser amount.

I raised a question about the 45 day requirement in another post, and we landed on the fact that we don't have to wait the 45 days to force place and charge a customers (still have to send a letter). So, what's the significance here of the 45 day letter cycle? I feel like I'm still missing something- not trying to be annoying about this!

They sent the 45 day letter. It had the wrong minimum amount of insurance required on the letter. They could send a courtesy follow-up to the customer about the corrected minimum amount required, but if the customer doesn't purchase insurance anyway - it really is a moot point. The only problem would be is if the customer went out and purchased a flood insurance policy for the amount on the original letter. Then the bank would have a business decision to make.

The lender has had email and verbal communications with the borrower letting them know the correct amounts so they are aware the amounts in the letters were incorrect. We were just wondering if we should send a more formal letter. They do intend on continuing their own insurance.

Thank you!

Ok, understand now. Thank you!

Save the e-mails and move on.