Would anyone be willing to share how they account for force-placed insurance premiums to be reimbursed by the borrower? We currently assess a Force-Placed Insurance Premium Fee code that is set to be collected at payoff. However, we would like to start billing the borrower when the fee is assessed. The problem is that if the borrower pays only their billed principal and interest, the system will show the loan as delinquent which will not go over well with our Lending, Credit and Accounting departments. Another potential issue is that an AFT or ACH will pull the full payment amount including the fee and the borrower and/or lender will want the fee payment to be reversed and refunded because they dispute the assessment of the fee.

I checked with JH Support and there is no systematic way to avoid these problems. Just wondering if someone has a relatively simple way of billing and collecting force-placed insurance premiums independently of the Loan application in order to avoid causing issues with the corresponding loans.

Thanks,

Tim

Timothy J. Mahan

Senior Vice President, Operations

MeridianBank

Tel:  484-568-5018

Fax:  484-582-0650

xxxxxx@meridianbanker.com

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