IBA Compliance Connection

Your go to source for compliance!

We would like to escrow for flood insurance (and property taxes) but not homeowners insurance. If we escrow for flood insurance, are we required to escrow for homeowners insurance? We do not make higher-priced mortgage loans (for which escrow accounts are required).

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No, we are not aware of any requirement to escrow homeowners insurance for non-higher-priced mortgage loans, even if you are escrowing flood insurance and property tax payments.