What does the July 2015 rule say about force placement of flood insurance?

Compliance > Lending > Flood > 2015 Flood Final Rule - Force Placement
Q:   What does the July 2015 rule say about force placement of flood insurance?
 
A:  Provisions are included in the final rules that clarify that institutions have the authority to charge a borrower for the cost of force placed insurance coverage beginning on the date a borrower’s coverage lapses or becomes insufficient.
 
The date coverage lapses would include:
 
  • the expiration date of the policy, or
  • the date a policy is cancelled.
 
 

See additional details in the July 2015 Final Rule on Loans in Areas Having Special Flood Hazards, here:  https://www.federalregister.gov/articles/2015/07/21/2015-15956/loans-in-areas-having-special-flood-hazards

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