We have an Escrow loan that has force place insurance, the renewal of the force place insurance is due, the loan officer wants to waive insurance because the customer only owes $2500.00 left on the home. Is this allowed under the Escrow Rules?

No. Consumer loan and flood insurance has to be force placed and escrowed under the flood rules, unless he is willing to release the property as collateral.

I'm sorry I did not put homeowner's insurance. I do know we have to have flood if its in a flood zone. The property is not in a flood zone. We are escrowing force place homeowner's and property taxes. The loan officer does not want us to renew the force place homeowner's he would like to waive the requirements. I just asking if we are allowed to do this under the Escrow Rules?

Homeowner's insurance is a risk decision and making an exception has fair lending considerations. Otherwise, purely a business decision.

thanks for your help