04/02/2012
If our institution waits the 45 days required after both notices regarding a borrower's lapse in hazard insurance are sent, and then force place, 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?
02/06/2012
What method(s) are being used to determine insurable value when calculating the appropriate amount of forced placed insurance?
08/23/2010
The bank makes a loan for the purchase of a manufactured home. The home will be placed on a pad in a park, which will be leased from the park owner, i.e., the bank does not have a lien on real estate. As I understand it, if the loan meets the criteria for a higher priced mortgage loan, beginning on 10/1/10, the bank must establish an escrow account for property taxes and premiums for mortgage-related insurance related to the loan. As RESPA does not apply to this loan, what, if any, escrow requirements apply (i.e., calculation of escrow cushion, annual escrow analysis, etc.)?
08/16/2010
If a borrower's insurance is cancelled and he obtains a new insurance policy, but there was a lapse in coverage from the date the old policy cancelled and the new policy began, should the lender force-place insurance for the lapse period?
05/24/2010
If our bank is making a construction loan and the hazard insurance is not required until after the slab draw is made, do we have to put an amount for it on the GFE and HUD?
03/08/2010
When doing a home equity loan, is it necessary to show the hazard insurance premium if it is already in place and the premium is not part of the closing?
08/10/2009
I am trying to determine whether flood insurance is required on a pole barn located in the flood zone. What I've read in the '07 Flood Guidelines is that pole barns are excludable, except if they meet the definition of a building. This one has three walls and a roof, but no floor. The surveyor is questioning how to do an elevation certificate, which is required by the insurance company, when there is no floor. There is an insurable value on borrower's hazard insurance policy for the barn. Any ideas?
10/20/2008
Does anyone have a good method for estimating the hazard insurance premium for the GFE? Obviously, for property already owned by the borrower, simply ask them for the amount or for the agent and contact for the amount. What about for a purchase money loan? At the time of application, the borrower won't necessarily know the amount of the hazard premium and we won't have an appraisal yet, so we won't know the value of the improvements. What is a good methodology in those circumstances?
06/16/2008
What is the formula that should be used for calculating hazard insurance coverage for a condo unit? How are banking institutions calculating this?
05/12/2008
How is the aggregate adjustment calculated? Does it kick in when the escrow exceeds 1/5 of the annual amount of the escrow?