[marindaalexis]

I do not mean home owners insurance I mean mortgage insurance... if the mortgage insurance was not authorized and signed at the closing can the lender or servicer force place it at a later date without any consent of the borrower?

[Musicfish]

If you apply for an FHA loan, and your deposit is less than 20% of the purchase price, they will charge you Mortgage Insurance. They don't need your consent - it's a stipulation of you getting the loan. IF, however, the application of mortgage insurance is NOT part of your agreement; meaning, you put MORE than 20% down, they can't arbitrarily stick it on later. Read your agreement very, very closely and see exactly what you agreed to.I hope that helps.

[src50]

If you are required to carry it as a condition of the loan, yes.

[mbrcatz]

Although they can force place it, if it wasn't addressed in the mortgage papers, they cannot hold the borrower responsible to pay the premiums for that forced placement coverage.But STANDARDIZED Mortgage contracts, ALL have wording that transfers the cost of forced placement coverage to the borrower.Obviously, as the lender has an insurable interest, they CAN obtain coverage for the property up to the extent of their interest (and no further).If someone wrote their own mortgage agreement, though, and failed to include the provision to transfer cost to the borrower, they'd have to ultimately pay the cost for the coverage.

[Chris C]

In most states and provinces there is an illegal thing known as tied selling. Tied selling is when a company says"You can only get this if you do this". In some situations insurance falls in the gap and banks will say you need to insure the debt to make sure they get paid (IE: if you are seriously ill and you need to pay your medical bills...if you're lucky enough to not get laughed at by the banker for asking for that...)In your question, can the bank force you to get it after you sign the peperwork and after your mortgage is inforce. NO: what was signed was signed and they cannot change that contract you signed. When it's up for renewal, possibly, but not before then.