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Friday, December 12, 2014

CFPB Proposes Modifications to Force Placed Insurance Notices

By ABIA Outside Counsel, James Sivon, Barnett, Sivon & Natter, P.C.

As part of a set of proposed changes to the CFPB’s mortgage servicing rules, the CFPB is proposing to amend the force-placed insurance disclosures to account for when a servicer wishes to force-place insurance because the borrower has insufficient, rather than expiring or expired, hazard insurance coverage on the property. Additionally, the Bureau is proposing to give servicers the option to include a borrower’s mortgage loan account number on the notices.

This proposal has yet to be formally published for comment, but ABIA will submit a comment on these proposed changes to the force-placed insurance disclosures.

View a copy of the proposal.