When to Disclose Premium on GFE

Answered by:

Question:

If a borrower is refinancing, paying his own escrows, and the insurance is in effect for an additional year, does the premium need to be disclosed on the good faith estimate?

Answer:

No.

If a borrower is refinancing the mortgage on his or her home and the new lender is requiring the borrower to maintain the existing hazard and flood insurance policies on the home, Block 11 may be completed with $0. [RESPA FAQ GFE Block 11 #3]

First published on BankersOnline.com 2/20/12