Answer:
by Randy Carey
The regulations require that force placed flood insurance be written and name the borrower as the insured party. The Bank can be an additional insured party or listed as the mortgagee. A typical mortgage impairment policy will not suffice as force placed flood insurance.
Answer:
by John Burnett
When a lender fails to require that the borrower obtain or maintain flood insurance, the lender enables the borrower to avoid complying with government requirements to either refrain from putting up vulnerable buildings in designated flood hazard areas or take on the cost of insurance against flood losses.