Agency Over Fannie, Freddie Takes Up Force-Placed Insurance

Law360, New York (July 11, 2012, 8:45 PM EDT) -- As state insurance regulators continue probing high rates charged by force-placed insurers, the federal agency that oversees Fannie Mae and Freddie Mac said Wednesday that it, too, is working on a policy aimed at slashing force-placed insurance costs.

Regulators have recently scrutinized the market for force-placed insurance — policies that banks impose when homeowners let their insurance lapse — following reports that insurers had overcharged homeowners by millions of dollars.

Federal Housing Finance Agency spokeswoman Stefanie Johnson told Law360 the regulator is "keenly interested" in costs...
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