Navigating the Complex Landscape of Hazard Insurance Compliance 2020 | American Bankers Association (ABA) | 23 January 2020 |

Mortgage servicers frequently struggle with compliance issues related to hazard insurance. Hear the most common mortgage compliance concerns regarding hazard insurance, and tips for appropriately handling them. Topics covered during the presentation include: the relationship between the mortgagee clause in a homeowner property insurance policy and the standard mortgage or deed of trust security instrument, the mortgagee’s rights under the homeowner policy, and steps the lender or mortgage servicer should take to protect those rights in the event of loss.

Discussion Highlights:
• Explain the difference between a standard mortgagee clause and an open mortgagee clause
• Understand the effect of foreclosure on the coverage provided by the mortgage clause
• Understand the mortgagee’s notice obligations to the insurer to protect coverage under the mortgagee clause
• Describe why the mortgagee must reduce its foreclosure bid price to account for available insurance proceeds
• Understand replacement cost value (RCV) vs. actual cost value (ACV) vs. outstanding balance of the loan
• Explain which party determines replacement cost at policy inception
• Understand insurable interest augmented by a discussion of collateral
• Describe state and local requirements (coverage limits) vs. GSE coverage requirements
• Discuss timing of LPI – the notice and waiting periods

Audience:
• Mortgage Lenders and Servicers
• Real Estate Attorneys
• Compliance Officers and Managers
• Chief Lending Officers
• Loan Officers
• Mortgage Loan Managers
• Risk Officers and Managers
• Auditors
• Chief Operating Officers
• Bank Counsel

2020 Speakers

Robert H. Cole
Executive Vice President, National Risk Brokerage (moderator)

Jason R. Bushby
Partner, Bradley

Chrys Lemon
Partner, McIntyre & Lemon, PLLC

Heather Howell Wright
Partner, Bradley