“Because it is the loan servicer's responsibility throughout the life of the loan to ensure adequate insurance is in place on a property, MBA has led the industry and, more specifically, its members on this issue by providing an array of products and services to assist them in addressing the insurance complexities facing them. These products and services are particularly helpful in markets where the lack of availability and affordability poses a significant problem to the borrower and the servicer,” said Kathleen Dufraine, Chair of the Commercial Real Estate/Multifamily Finance Board of Governors (COMBOG) Servicing Committee's Executive Insurance Council and Vice President of Global Realty Outsourcing, Inc. “MBA has developed this document to help servicers navigate through the decision making process to evaluate when force placed insurance may be appropriate."

The White Paper does not make any conclusions or recommendations as to the final outcome of the due diligence review. The outcome and final conclusion of such a review should be determined on a case by case basis, taking into account, among other things, the specific property, the loan documents, any transaction or servicing agreements, insurance information, the market, the company profile and the lender or trust associated with the transaction. Also as a note, the White Paper is a snapshot, because even during the period of its preparation, there may have been developments in the market that are certain to have an impact on knowledge of these areas in both the short-term and long-term.

To access Due Diligence for Force Placed Insurance, click here. This White Paper is just one example of how MBA is providing an array of services to help the industry address the issue of available and affordable insurance coverage. For more insurance information, visit MBA's Insurance Resource Center at http://www.mortgagebankers.org/IndustryResources/Insurance .

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 370,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:  www.mortgagebankers.org.