July 2015 Flood Final Rule – What does the July 2015 rule say about terminating force placed flood insurance?

Compliance > Lending > Flood > 2015 Flood Final Rule - Force Placement
Q:   What does the July 2015 rule say about terminating force placed flood insurance?
 
A:   Force placed (FP) flood insurance must be terminated within 30 days of receiving confirmation of a borrower’s flood coverage.  A lender/servicer must:
 
1) notify the insurance provider to terminate any FP insurance, and
2) refund to the borrower all premiums paid by the borrower for any FP insurance purchased by the institution which was in effect at the same time as the borrower’s insurance.
 
 

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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