Skip to content

Fee for Force-Placed Flood Coverage

Answered by: 

Are banks allowed to charge a fee (say $25) for doing force-placed flood insurance? The regulation reads "The bank may charge the borrower for the cost of premiums and fees incurred in purchasing the insurance." Does this mean only direct fees? Also, can this fee be recurring, say monthly or quarterly?

I do not interpret that section to allow the bank to "up-charge" for the premium. I have always taken that to mean any premiums, fees (such as processing fees by the insurance company), FZD re-certification fees etc. However, to repeat, this is my interpretation.

First published on 11/15/04

First published on 11/15/2004

Filed under: 
Filed under lending as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics