October 15, 2013 at 9:51 pm EDT
#4047
rcooper
Member
This is referring to hazard insurance being paid as part of an escrow agreement or other agreement that the borrower and lender have in place for the lender to pay the hazard insurance (perhaps the borrower has requested the lender to make payments, on the borrower’s behalf, for a policy which the borrower had already established, etc.).
Yes this only applies to consumer loans covered by RESPA.