Bank charges a fee when it is required to force place hazard insurance for a borrower. Borrower provides proof of new coverage and Bank refund premiums for overlapping coverage. Is the Bank required to refund the service fee in these instances?
1. Insurance expires on 03/01/18, we go through the process of the letters requesting insurance. Bank obtains force placed insurance stating on 03/01/18 and charges a fee. Borrower obtains their own hazard insurance effective 03/01/18. Coverage provided by the borrower is continuous.
2. Insurance expires on 03/01/18, we go through the process of the letters requesting insurance. Bank obtains force placed insurance stating on 03/01/18 and charges a fee. Borrower obtains their own hazard insurance effective 07/01/18. There is a gap in coverage provided by the borrower.
The question is related to RESPA 1024.37(g)
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