Due to recent rain here in Texas, there was flooding in a city that we do business with regularly. One particular loan we had force placed flood insurance on; which a claim was filed. After review, the provider approved the claim and sent us a check. From my understanding, force placed policies cover the bank's interest only, correct? So we would use the check received to payoff our loan, right?
My other issue, the check paid for the coverage amount, which is more than the current loan balance. So, does the customer receive the remaining funds?
I appreciate the help!