02/14/2021
Is it true that the NFIP will only pay out if the borrower has hazard insurance in place on the property? Our bank's practice is to get hazard insurance at closing, but doesn't monitor for it after that. If the hazard insurance policy has expired and there is a flood, will the NFIP pay out?
03/17/2019
On a Deed of Trust-secured loan, hazard insurance is in the name of the lessee, loan is in the name of the property owner. Do we need to add the property owner as an additional insured or an additional interest?
01/20/2019
This question was asked and answered back in April 2012, but I was wondering if there had been a final proposal to answer this question?
If our institution waits the 45 days required after both notices regarding a borrower's lapse in hazard insurance are sent, and then force placed, can we back date the policy so that it is in effect the day of cancellation and still be in compliance with the Dodd-Frank Act?
The second part is this: if this is not in compliance, how can we structure force placement of the insurance, and the notices required, so as to be in compliance, and still make sure the home is covered? Basically, would our institution have to foot the bill for that 45 days?
07/17/2016
I have a question related to long backdating (or just backdating) for force placed insurance. I am not finding a lot of information regarding backdating polices other than the standard 45 days that is required when placing a policy that has lapsed or expired.
Does anyone know if there are current lawsuits concerning backdating a policy to an 'effective date' and charging the customer for that time even if nothing happened to their dwelling? For example, when we charge the customer on the 45th day of a new
policy, but it is back dated to when their policy expired or lapsed, is this seen as a UDAAP issue with consumers? In essence we are charging them for a policy when they did not have a claim, so I am unsure what recommendations I should make regarding backdating polices. And, there are no kickbacks, this is simply a backdating question and premiums for servicing. I hope this makes sense! I am having difficulty finding any litigation and/or trends regarding this. Any feedback is welcomed. I am familiar with the process of 1024.37 however am looking a little deeper into the effective dates of polices placed, hazard or flood. Also cannot find much on Fannie Mae or Freddi Mac.
10/18/2015
A customer provided hazard insurance and there is a deficiency in the dwelling coverage. Is there a model letter available for deficient coverage amount to send to the customer?
08/25/2014
Escrow Question: If the customer currently has force placed insurance and in a loan rework cannot get homeowner's insurance, can the force placed insurance be escrowed?
05/26/2014
When it comes to the rule of force placed insurance notification. Is doing a protective advance on a loan considered forced-placed?
07/01/2013
These are general RESPA questions that have recently been proposed by Management and we would appreciate your expertise.<ol><li>Do we have to itemize Hazard Insurance on the GFE for a home equity loan when the Hazard Insurance is already in place? It is my understanding this is a requirement on the GFE because we require the Hazard Insurance to be in place before making the loan therefore it is a cost of the loan.<li>If all the fees are paid by the lender except for the origination fee, do we need to itemize each fee paid by the lender on the GFE? Doing this gives the wrong impression to the customer that they will owe fees that they actually won't have to pay.<li>If your answer is yes to #2, could we show a credit on the GFE for the fees being paid by the lender? Doing so would bring the final fee disclosed to reflect the actual amount being paid by the customer. Another related-question would be what line would the credit be reflected on the GFE? </ol>
05/13/2013
We are currently completing a review of all of our loans that are in a flood zone to determine if they have adequate coverage. The loan that is in question was originated in 2008 and at that time we used the Cost Value from the appraisal minus the land value to determine the amount of coverage required. We used that same method during our review to determine if they still have adequate coverage. However, our auditor is now saying that since the appraisal is from 2008, we can no longer use that value and must use the RCV from the hazard insurance policy.At this point we would have to go back to our customer and tell them that for the last 4 years you have had sufficient coverage, but now that your appraisal is old we cannot use that value anymore and you need to increase your coverage.Is this the correct method? We have not renewed the loan or done anything that would warrant a new appraisal and I have not read anywhere that says after X amount of years the you can no longer use the Cost Value from the appraisal to determine the amount of coverage required.
05/06/2013
These are general RESPA questions that have recently been proposed by Management and we would appreciate your expertise.<ol><li>Do we have to itemize Hazard Insurance on the GFE for a home equity loan when the Hazard Insurance is already in place? It is my understanding this is a requirement on the GFE because we require the Hazard Insurance to be in place before making the loan; therefore it is a cost of the loan.<li>If all the fees are paid by the lender except for the origination fee, do we need to itemize each fee paid by the lender on the GFE? Doing this gives the wrong impression to the customer that they will owe more in fees.<li>If your answer is yes to #2, could we show a credit on the GFE for the fees being paid by the lender? Doing so would bring the final fee disclosed to reflect the actual amount being paid by the customer. Another related question would be what GFE line would the credit be reflected on?</ol>