Skip to content
BOL Conferences
Thread Options
#2226803 - 12/05/19 02:58 PM 2nd loan force place?
Soccer Offline
Diamond Poster
Joined: Jan 2010
Posts: 1,028
Utopia
We currently have a residential mortgage where we had to force place, the borrower is now requesting a home equity loan on the same property. I am aware that we can not originate the home equity with additional force placed insurance. The question we have is, do we require the borrower to have the policy only on the new amount or are we required to request they get a policy for both?
_________________________
Everything happens for a reason

Return to Top
Flood Compliance
#2226816 - 12/05/19 03:52 PM Re: 2nd loan force place? Soccer
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
Why would you make another loan to a customer that is in default on a current loan that they have with you?

Make them get a policy to cover both loan amounts before allowing this conversation with them continue. Otherwise deny them for "past loan performance with you".
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top