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Mandatory Escrows for All HPMLs Issues

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Since the establishment of escrows for all HPMLs became mandatory, we are having an issue with consumers who pay their homeowners insurance on a monthly basis. They don't want to make duplicate payments to the insurance company as well as our bank to fund their escrows. Understandably, they view this as a hardship, and are unable to afford an annual payment to their insurance company in order to get their premium paid in full and then start to fund their escrow. Any ideas what we can do in these situations? I understand that we can't simply have them sign a waiver releasing us from paying their homeowners premium, but still paying their real estate property taxes from their escrow.

Simply have the insurance company bill the bank for the monthly insurance premium. We've only had one of these (an in-house loan) and we treated it the same as we do monthly PMI premiums.

First published on 9/10/12

First published on 09/10/2012

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