New mortgage servicing rules enacted by the Consumer Financial Protection Bureau go into effect January 10, 2014 to protect consumers from widespread unfair practices related to force-placed mortgage hazard insurance. Mortgage servicers will now be prohibited from charging excessive fees on force-placed policies.
Here is an overview of two major substantive rules regarding force-placed insurance.
Excessive Fees Limitations
Since the financial crisis, the mortgage industry has reaped millions in profits from force-placing expensive insurance policies on unsuspecting borrowers when their own policies lapsed... Read More