What is the name of your state (only U.S. law)? Florida
I have been working with a mortgage broker on a HARP 2.0 refinance for an investment property. The prospective lender has been requesting that my Homeowner's insurance be changed to list them as the mortgage holder. They have not issued a formal approval for my mortgage and no closing date has been set. My mortgage broker has told me that this is standard practice, and has urged me to authorize the change. He is telling me that not doing so may delay the closing. I can understand them wanting to be listed as the mortgage holder at closing, but I don't understand why they are pushing this without having a closing date set. As it stands right now, if I make this change they will be listed as the mortgage holder even though they have not issued a mortgage.
I'm very concerned that my current mortgage holder may take action when they are informed that they are no longer listed as the mortgage holder. That puts them at risk, and I think it violates the loan agreement. Is my broker giving me the right advice? Are there actions that I can take without risking a delay or rejection of the refi?
I have been working with a mortgage broker on a HARP 2.0 refinance for an investment property. The prospective lender has been requesting that my Homeowner's insurance be changed to list them as the mortgage holder. They have not issued a formal approval for my mortgage and no closing date has been set. My mortgage broker has told me that this is standard practice, and has urged me to authorize the change. He is telling me that not doing so may delay the closing. I can understand them wanting to be listed as the mortgage holder at closing, but I don't understand why they are pushing this without having a closing date set. As it stands right now, if I make this change they will be listed as the mortgage holder even though they have not issued a mortgage.
I'm very concerned that my current mortgage holder may take action when they are informed that they are no longer listed as the mortgage holder. That puts them at risk, and I think it violates the loan agreement. Is my broker giving me the right advice? Are there actions that I can take without risking a delay or rejection of the refi?
