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Force Placed Hazard Insurance due to coverage problem

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  • October 26, 2016 at 7:44 pm EDT #10142
    Susan
    Member

    The revised servicing rules that are effective next year address the issue of needing to notify the customer that their hazard insurance provides insufficient coverage and so may require a forced place policy – instead of directly addressing only insurance that is or has expired. What have you been doing up to this time for customers that had too little coverage or perhaps had policies written with certain limitations that needed to be changed, but the customer was not responsive? Were you using the model notices for forced place insurance, but tweaking the language? Thanks!

    October 28, 2016 at 3:54 pm EDT #10145
    rcooper
    Member

    From member PCorder: We do not monitor hazard insurance coverage after the loan closes. Our blanket insurance will cover us for any losses.

    October 28, 2016 at 5:34 pm EDT #10146
    kmeade
    Participant

    Do to the all the new requirements for hazard insurance we also purchased a blanket insurance policy. So we don’t have to monitor hazard insurance coverage after closing. We decided the cost of the policy was cheaper than hiring more staff to comply with the new requirements. Hope this helps!

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