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How many days before assessing a fee for force-placed insurance must a servicer request hazard insurance information from a borrower?
A) 30
B) 90
C) 60
D) 45
The correct answer is: D) 45
The correct answer indicates that a servicer must request hazard insurance information from a borrower 45 days before assessing a fee for force-placed insurance. This requirement is designed to protect borrowers by ensuring they have ample time to secure their own insurance coverage if they are found to be lacking it. This 45-day notice is a regulatory measure put in place to give borrowers a fair opportunity to respond, address any potential lapses in their insurance policies, and avoid additional costs associated with force-placed insurance, which can often be significantly higher than typical homeowner's insurance rates. By adhering to this timeline, servicers are required to communicate proactively with borrowers and uphold transparency in the process, thus safeguarding the interests of both the lender and the borrower. The other duration options may not meet the compliance requirements established for this specific scenario, reinforcing why 45 days is the mandated timeline.