Int Q&A – Escrow 3 – Are lenders required to escrow force-placed insurance?

Compliance > Lending > Flood > FAQs
Q:  Escrow 3 – Are lenders required to escrow force-placed insurance?
 
A:   Yes, the Regulation requires lenders or their servicers to escrow flood insurance premiums for any residential designated loan made, increased, extended, or renewed on or after January 1, 2016, unless the lender or the loan qualifies for an exception from the escrow requirement. The Act and Regulation do not include an exception to the escrow requirement for force-placed insurance.
 
 
ADDITIONAL INFORMATION:
This Q&A was included in the Interagency Questions and Answers Regarding Flood Insurance, which were issued on 05/11/2022.  They were published in the Federal Register on 05/31/2022 and may be found here:  https://www.federalregister.gov/documents/2022/05/31/2022-10414/loans-in-areas-having-special-flood-hazards-interagency-questions-and-answers-regarding-flood
 

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