Page:United States Statutes at Large Volume 124.djvu/2209

 124 STAT. 2183 PUBLIC LAW 111–203—JULY 21, 2010 a reasonable basis for obtaining force-placed insurance unless the requirements of this subsection have been met. ‘‘(1) WRITTEN NOTICES TO BORROWER.—A servicer may not impose any charge on any borrower for force-placed insurance with respect to any property securing a federally related mort- gage unless— ‘‘(A) the servicer has sent, by first-class mail, a written notice to the borrower containing— ‘‘(i) a reminder of the borrower’s obligation to main- tain hazard insurance on the property securing the federally related mortgage; ‘‘(ii) a statement that the servicer does not have evidence of insurance coverage of such property; ‘‘(iii) a clear and conspicuous statement of the procedures by which the borrower may demonstrate that the borrower already has insurance coverage; and ‘‘(iv) a statement that the servicer may obtain such coverage at the borrower’s expense if the borrower does not provide such demonstration of the borrower’s existing coverage in a timely manner; ‘‘(B) the servicer has sent, by first-class mail, a second written notice, at least 30 days after the mailing of the notice under subparagraph (A) that contains all the information described in each clause of such subparagraph; and ‘‘(C) the servicer has not received from the borrower any demonstration of hazard insurance coverage for the property securing the mortgage by the end of the 15-day period beginning on the date the notice under subparagraph (B) was sent by the servicer. ‘‘(2) SUFFICIENCY OF DEMONSTRATION.—A servicer of a fed- erally related mortgage shall accept any reasonable form of written confirmation from a borrower of existing insurance coverage, which shall include the existing insurance policy number along with the identity of, and contact information for, the insurance company or agent, or as otherwise required by the Bureau of Consumer Financial Protection. ‘‘(3) TERMINATION OF FORCE-PLACED INSURANCE.—Within 15 days of the receipt by a servicer of confirmation of a bor- rower’s existing insurance coverage, the servicer shall— ‘‘(A) terminate the force-placed insurance; and ‘‘(B) refund to the consumer all force-placed insurance premiums paid by the borrower during any period during which the borrower’s insurance coverage and the force- placed insurance coverage were each in effect, and any related fees charged to the consumer’s account with respect to the force-placed insurance during such period. ‘‘(4) CLARIFICATION WITH RESPECT TO FLOOD DISASTER PROTECTION ACT.—No provision of this section shall be con- strued as prohibiting a servicer from providing simultaneous or concurrent notice of a lack of flood insurance pursuant to section 102(e) of the Flood Disaster Protection Act of 1973. ‘‘(m) LIMITATIONS ON FORCE-PLACED INSURANCE CHARGES.— All charges, apart from charges subject to State regulation as the business of insurance, related to force-placed insurance imposed on the borrower by or through the servicer shall be bona fide and reasonable.’’. Deadline. Time period. Deadline.