FHFA Seeks Curbs on Force-Placed Homeowner’s Insurance
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The regulator of Fannie Mae and Freddie Mac, seeking to protect homeowners from price-gouging on insurance, wants to ban fees and commissions on policies that borrowers are compelled to buy when their own coverage lapses.
The Federal Housing Finance Agency proposed curbs on so-called force-placed insurance practices that drive up costs for consumers, according to a statement today. The FHFA would stop insurers from paying mortgage companies that send them such business and other practices that create a conflict of interest, according to the statement.