Federal Mortgage LawsQuestion 81 of 400
Under Reg X, before a servicer may charge a borrower for force-placed hazard insurance, it must generally send an initial notice and then wait at least how long before charging?
a.10 days
b.15 days
c.30 days
d.45 days
Explanation
Regulation X requires a servicer to deliver an initial notice at least 45 days before charging for force-placed insurance, and a second reminder notice no earlier than 30 days after the first, before assessing any premium. If the borrower provides proof of their own hazard coverage, the servicer must cancel the force-placed policy and refund duplicate charges.
Law Reference: Real Estate Settlement Procedures Act (Reg X servicing rules)Practice all 400 questions free — no signup required.
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