Force Placed Insurance. A. Servicer shall not obtain force-placed insurance unless there is a reasonable basis to believe the borrower has failed to comply with the loan contract’s requirements to maintain property insurance. For escrowed accounts, Servicer shall continue to advance payments for the homeowner’s existing policy, unless the borrower or insurance company cancels the existing policy. For purposes of this Section (VI), the term “force-placed insurance” means hazard insurance coverage obtained by Servicer on behalf of the owner or assignee of a mortgage loan that insures the property securing the loan. However, for purposes of this Section (VI), the term “force-placed insurance” does not include hazard insurance required by the Flood Disaster Protection Act of 1973. The term “
Appears in 4 contracts
Samples: Settlement Agreement, Settlement Agreement, Settlement Agreement
