Experience I am a Certified Insurance Counselor and have been in the insurance business since 1990.
Organizations Society of Certified Insurance Counselors and the Society of Financial Professionals.
Education/Credentials BA from Missouri Baptist University, and I hold six professional designations.
Awards and Honors 1990 Rookie of the Year, Gold Seal Agent, Top Producer for auto, home, life, and health insurance for AAA Auto Club of Missouri and Anthem Blue Cross of Missouri.
Question I have a client who is in the middle of a refi. The new mortgage company is requiring that they have coverage up to $240,000 which is their loan amount. According to the M&S, the RC on their home is $161,500. With the Guaranteed Replacement cost (125% cap), they have $201,875 in coverage. The bank is requiring $192,000 with GRC of $240,000.
I used to have a document that illustrated this was an illegal practice, but I have moved offices and can't find it! I'm not sure if this was a nationwide document or Arizona specific.
Any help would be greatly appreciated,
Heather
Answer Hi Heather,
In New York, a section of state Banking Department regulation prohibits mortgage lenders from requiring a borrower to purchase insurance in amounts exceeding replacement costs. To learn how Big "I" Virtual University director Bill Wilson answered the agent's question, go to the VU Web site . A member login is required to access this article. Other articles are featured in The VUpoint, Virtual University's free electronic newsletter. You do not have to be an IIABA member or VU subscriber to subscribe to the newsletter, though there are features only available to members/subscribers.
