RESPA and Forced Placement Reminder Notice
Issue/Inquiry
The Bank has a borrower who has not provided evidence of hazard insurance. The Bank sent out the letters required by RESPA over a 45-day period. The last letter, which was sent out 15 days prior to the actual force-placement, gave an estimate as to what the cost of the force-placed hazard insurance would be. However, when obtaining quotes for the cost, the administrator inadvertently referred to the property as being residential, when it is actually commercial. The Bank obtained new quotes and the cost is approximately $4,000 more than the original estimate. Another letter has been sent to the borrower correcting the estimated cost. Does the Bank have to wait another 15 days before force placing the hazard insurance coverage?
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