Fannie Mae takes charge on forced-place insurance, announces changing of rules

The issue of force-placed insurance has been thrust into the limelight this week by the Federal National Mortgage Association, more commonly known as Fannie Mae. Forced-placed insurance is a practice that some insurance companies and banks utilize to force homeowners to purchase expensive insurance policies. In New York, insurance regulators have been investigating the issue in the local industry. Spurred by state, federal and consumer attention, Fannie Mae has announced that it will be changing the rules concerning forced-placed insurance. For one, the government-sponsored enterprise will be overseeing forced-placed policies…

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Old Republic maybe getting a second look

Old Republic International, a multinational insurance organization, exited the mortgage insurance business just over two months ago. The company had been operating under a waiver provided by federal insurance regulators that allowed it to sell policies. When the waiver expired, the company took the opportunity to renovate its mortgage policies to accommodate changes made to insurance laws in a number of states. Now, the insurer is looking to re-enter the national market, hoping to gain favor with federal regulators and investors. Old Republic’s goal hinges on whether the company can…

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