U.S. Takes Aim at 'Forced' Insurance

November 5, 2013
Wall Street Journal  
mortgage lending news

The Federal Housing Finance Agency (FHFA) will bar mortgage companies from accepting payments to arrange force-place homeowners' insurance, government officials have announced. The housing regulator will ban fees for the coverage, which is often forced on borrowers whose regular homeowners' policy has lapsed, despite industry objections that such a move encroaches on state regulators.

Rather than set rules on what insurers can charge for such policies, which is generally the purview of states, the FHFA will prevent mortgage servicers that do business with Fannie Mae and Freddie Mac from accepting certain payments. Doing so essentially would block the entire industry from the practice, since Fannie and Freddie back about two-thirds of U.S. mortgages

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.