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May a lender purchase flood insurance coverage on behalf of the borrower?

April 26, 2017behalf borrower flood insurance coverage Lender purchase

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May a lender purchase flood insurance coverage on behalf of the borrower?

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Yes. If after a lender notifies a borrower of the need for flood insurance and the borrower refuses to respond, the lender must purchase the coverage on behalf of the borrower and may pass the costs of obtaining the coverage on to the borrower.