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Force-Placed Insurance Issues - Navigating RESPA's Hazard and the Biggert-Waters Flood Rules

Lender force-placement of hazard insurance is a necessary remedial risk-mitigating action, taken in cases where the borrower fails to maintain adequate hazard insurance on the property securing the loan, so that the collateral remains safely and soundly protected against unreimbursed loss. Until recently, the lender’s ability to force-place hazard insurance was defined by contract and some state regulation. Although there has long been federal regulation governing the force-placement of flood insurance, there has been no federal statute or regulation governing force-placement of hazard insurance. Now there is.

In this session, we will present you an overview of the hazard insurance force-placement rules brought about by the Dodd-Frank Act, finalized by the Consumer Financial Protection Bureau, and effective January 10, 2014.

What You Will Learn:

  • The background and regulatory authority
  • Just what is being regulated
  • The extent of the limited “small servicer” conditional exemption
  • The extensive regulatory notice requirements
  • When servicers can charge for force-placed hazard insurance, and when they cannot
  • The limits on charges to the borrower
  • Cancellation requirements
  • How hazard insurance and flood insurance force-placement requirements compare

Who Should Attend:

All lending, compliance, and audit related personnel

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