GFE and HUD - Hazard Insurance

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Question:

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?

Answer:

You're still requiring the insurance in connection with the loan, so it should be disclosed. You won't require it at closing, so you should label it as "POC (borrower)".

First published on BankersOnline.com 5/24/10