A servicer has a reasonable basis to believe required hazard insurance is missing and sends an initial force-placed insurance notice. Before charging for coverage, what minimum initial-notice and reminder-notice intervals must it satisfy, assuming no evidence of coverage is received?
Correct Answer
D) Initial notice at least 45 days before charging; reminder at least 30 days after it and 15 days before charging
D. Satisfy the 45-day initial interval and the reminder's 30-day and 15-day constraints. The reminder cannot be delivered or mailed until at least 30 days after the initial notice. Assessment must be at least 45 days after the initial notice and at least 15 days after the reminder; the periods can overlap rather than necessarily totaling 60 days. Scope and exceptions: These are notice and assessment requirements for covered force-placed hazard insurance, not a rule requiring purchase to wait until day 45. A reasonable basis, compliant notices and absence of evidence of continuous required coverage remain necessary. Flood insurance and renewal notices have distinct rules. Source: Section 1024.37(a), (b), (c)(1), (d)(1) and (e) — https://www.consumerfinance.gov/rules-policy/regulations/1024/37/
Why This Is the Correct Answer
D. Satisfy the 45-day initial interval and the reminder's 30-day and 15-day constraints. The reminder cannot be delivered or mailed until at least 30 days after the initial notice. Assessment must be at least 45 days after the initial notice and at least 15 days after the reminder; the periods can overlap rather than necessarily totaling 60 days. Scope and exceptions: These are notice and assessment requirements for covered force-placed hazard insurance, not a rule requiring purchase to wait until day 45. A reasonable basis, compliant notices and absence of evidence of continuous required coverage remain necessary. Flood insurance and renewal notices have distinct rules.
Why the Other Options Are Wrong
Option A: Wait 45 days after the first notice, then always add a separate 15-day period
It unnecessarily starts the reminder interval only after 45 days.
Option B: Charge immediately after sending the initial notice
The initial notice does not permit immediate assessment.
Option C: Send one notice and charge after 30 days
It omits the reminder and shortens the initial interval.
Exam Tip
Track both notices; elapsed time alone does not authorize a charge.
More Federal Laws Questions
Before the team acts on a production meeting, a training manager must address SCRA Interest Rate Cap. Which response is most defensible?
A team member asks about RESPA Kickbacks and Referrals in an investor-delivery review while trying to confirm the rule-based response. Which response should the loan team use?
During a disclosure desk review, the loan team encounters an RESPA Servicing Transfer issue. Which response should avoid a shortcut that would misapply the rule?
A disciplinary-risk review raises a question about TILA APR and finance-charge rules. Which action should the renewal specialist recommend?
An MLO is reviewing procedures for a case where a compliance analyst asks why covered mortgage application data is collected. What is the proper handling?
A consumer complaint response raises a question about GLBA privacy requirements. Which action should the state compliance officer recommend?
Before the team acts on a branch training session, a policy analyst must address RESPA Servicing Transfer Notice. Which response is most defensible?
A training manager is resolving RESPA Referral Fees during an internal audit sample. Which action best fits the rule?
An operations lead is resolving ECOA Prohibited Discrimination Bases during a loan-team coaching session. Which action best fits the rule?
In a file escalation meeting, a disclosure specialist sees facts tied to TILA Closing Disclosure. What should the file reflect?
People Also Study
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A mortgage file is paused during a secondary-market screen because of RESPA Section 8 Prohibitions. Which answer should decide how the file should be documented?
Next Question
During a disclosure desk review, a processor encounters a TRID Loan Estimate Timing issue. Which response should select the answer that fits the governing requirement?