Force Place Hazard Insurance Service Fee

Bank charges a fee when it is required to force place hazard insurance for a borrower. Borrower provides proof of new coverage and Bank refund premiums for overlapping coverage. Is the Bank required to refund the service fee in these instances?

1. Insurance expires on 03/01/18, we go through the process of the letters requesting insurance. Bank obtains force placed insurance stating on 03/01/18 and charges a fee. Borrower obtains their own hazard insurance effective 03/01/18. Coverage provided by the borrower is continuous.

2. Insurance expires on 03/01/18, we go through the process of the letters requesting insurance. Bank obtains force placed insurance stating on 03/01/18 and charges a fee. Borrower obtains their own hazard insurance effective 07/01/18. There is a gap in coverage provided by the borrower.

The question is related to RESPA 1024.37(g)

thanks for you time

bump

anyone have an opinion??

1. No - since there was no gap, you put them back to where they were with no fee allowed.
2. Yes - as there was actually a period of time when the force placed insurance was effective.

Thanks, We were leaning to the same conclusion, but wanted to hear other opinions.