Customer had Tx and Haz Insurance escrowed. Customer has now cancelled insurance and we've not seen a refund here at the bank. Perhaps the customer has it. Is the bank required, at this point to force place insurance? Please note that at this low $5,700 loan balance our policy is to not require or track insurance coverage at this low threshold.

There is no compliance issue here. It's a business risk decision. If the bank is willing to let the borrower go without hazard insurance given the loan balance, it can do so, and keep its corporate fingers crossed there's no hazard loss before the loan is paid off.

Thanks.