Are You in Compliance with the new GSE Lender-Placed Insurance Requirements?
Effective June 1st, the GSEs, under FHFA’s direction, imposed additional requirements for lender-placed insurance (LPI). Under these new guidelines, if a servicer obtains LPI, the servicer or its affiliates may not receive compensation from LPI carriers. Additionally, a servicer cannot use its affiliates to insure or reinsure LPI.
The ABIA has a Task Force of members that work on Lender-Placed Insurance issues. If you are an ABIA member and would like to learn more about ABIA's work on LPI, please contact us and visit our website.