FHFA Request for Comment on Force-Placed Insurance Proposal Praised, Encourages Calls for Further Openness
April 4, 2013
Industry insiders, at least in some corners, may not be wild about the Federal Housing Finance Agencys recent proposal to curb what it considers excessive force-placed insurance payments but the FHFAs decision to seek public input on the measure is seen as a promising sign of future openness on agency policymaking. Under the FHFA proposal issued last week, seller/servicers would be prohibited from accepting sales commissions or fees related to the placement of force-placed insurance where a conflict of interest exists between them and the insurance providers and their affiliates. Formally published in the March 29 Federal Register for a 60-day comment period, the FHFAs proposal responds...