Clarification of Force Placement

Posted By: George

Clarification of Force Placement - 05/02/16 05:30 PM

I am a little confused. I am 99% sure that I read/heard in a webinar that lenders can force place flood day 1 after the current policy lapses, but must send out the 45 day notification letter. In my research today, everything sounds like we HAVE to wait the 45 days until force placing. Can anyone shed some light on this please?

Thank y'all in advance!
Posted By: David Dickinson

Re: Clarification of Force Placement - 05/02/16 06:07 PM

1. You must notify the borrower upon discovering inadequate insurance.
2. You can force place the insurance at any time, but must do it by day 46 after notifying the customer.
3. You can charge the borrower as soon as you force place insurance.
4. If the borrower purchases their own, you must cancel your force placed policy and refund any overlap.

What are you reading that contradicts this (saying you have to wait)?
Posted By: George

Re: Clarification of Force Placement - 05/02/16 06:22 PM

I am looking through webinar material and other compliance material that I have. That's just how I am interpreting it, that we have to wait. But I wasn't completely positive.
Posted By: George

Re: Clarification of Force Placement - 05/02/16 07:40 PM

Quick follow up: I am assuming the borrower is still responsible for any monies owed for any non-overlapped time?
Posted By: David Dickinson

Re: Clarification of Force Placement - 05/02/16 07:50 PM

Quote:
Quick follow up: I am assuming the borrower is still responsible for any monies owed for any non-overlapped time?

Yes
Posted By: George

Re: Clarification of Force Placement - 05/02/16 07:51 PM

Thank you, David, I appreciate your help sir!