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#2241466 - 08/21/20 05:25 PM Escrow-insurance cancellation
Kristi Offline
Member
Kristi
Joined: Feb 2005
Posts: 85
We have a customer that canceled his homeowners insurance 2 months after loan closing. We have a blanket hazard policy that covers the bank as long as he had insurance at closing which he did. We just found out that it was canceled when we went to pay the premium out of his escrow.

My question... Do we force place hazard insurance for him and take it out of his escrow even though the premium will probably be much higher then if he purchased it himself? If we do that then he'll have a shortfall when it comes to pay his taxes in October. He won't return calls or emails for us to address the policy cancellation.

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Lending Compliance
#2241467 - 08/21/20 05:35 PM Re: Escrow-insurance cancellation Kristi
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,254
Galveston, TX
Totally a business decision if this is not an HPML.
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