CFPB Consumer Advisory Letter
The Consumer Financial Protection Bureau (CFPB) released a recent advisory letter to consumers concerning home insurance and lender-placed insurance. The CFPB’s advisory highlights emphasize the importance of consumers actively maintaining their homeowner’s insurance policies to avoid lender-placed insurance, which can be significantly more expensive and provide less coverage. The CFPB advisory letter to consumers does not require any changes with existing Proctor Loan Protector procedures and is simply an informative resource for consumers.
Below are some key takeaways from the advisory:
- Maintain Active Home Insurance: The CFPB advises consumers to maintain active home insurance policies throughout the life of their mortgage loan to avoid lender-placed insurance, which can be more expensive with less and limited coverage. Resources are provided encouraging consumers to shop around for the right coverage to avoid lender-placed insurance.
- Communication with Servicers: If there are concerns of issues related to lender-placed insurance the CFPB recommends open and proactive communication with mortgage servicers to address and resolve any concerns.
- Regulatory Protections: The advisory also highlights regulatory protections in place to safeguard consumers and ensure transparency in the lender-placed insurance process.
The CFPB consumer advisory letter can be viewed here.
If you have any questions, please contact your relationship manager.