CFPB Treads Lightly on Force-Placed Insurance
The CFPB's new rules will reportedly assure that borrowers are warned in advance of force-placed insurance's cost and prevent banks from force-placing policies on many escrowed loans.
January 18, 2013
That's the broad opinion of consumer advocates, insurance market observers, and Assurant, the largest insurer in the market for the specialty product. Also known as lender-placed coverage, force-placed insurance is a type of policy that banks purchase to protect homes when troubled mortgage borrowers allow their own policies to lapse.
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