What is lender‑placed insurance?
Lender‑placed insurance is coverage obtained by the servicer when a borrower’s insurance lapses. This insurance is often more expensive and provides limited coverage. Freddie Mac requires servicers to notify borrowers before placing insurance.
Related FAQs
- Can a property be insured for less than the loan amount?
- Why do servicers review insurance deductibles?
- Can a borrower change insurance providers during the loan?
- Why do servicers require flood insurance escrow?
- Why do servicers need proof of insurance renewals?
- Can insurance claims affect escrow?
- Why do servicers require updated hazard insurance declarations?
- Why is hazard insurance required?
- Can borrowers choose their insurance provider?
- Why do lenders require flood zone verification?
- What is mortgage insurance (MI)?
- Can mortgage insurance be removed?
- What happens if insurance coverage lapses?
- Why does Freddie Mac require proof of insurance?
- Why is homeowners insurance required?
- Is flood insurance required?