[thecoreltd]

that charge MASSIVE amounts of money for thier insurance binders? We were not aware that our home insurance was at renewal time, as we moved in early June we expected renewal to be then also.Anyway, we had something in the mail suggesting we needed to provide insurance documentation so i quickly leanered we had none. I got a new policy & had them email docs over to Suntrust. In the meantime we had a lapse of 3 months (yes a long time) But we didnt recieve anything before that point & I have a ton of stuff going on. New business, an 18month old with special needs, so anyways regardless of my issues..... They supposedly selected a company (I dont believe that) I think Suntrust owns said insurance co!They charged me $4800 for 3 months insurance! Our annual policy is just $2400, so this is a CRAZY inflated rate & I dont know what I can do about it now.......?If I pay my regular payment less the additional $400 escrow per month they are asking for, will they try to foreclose???Please any ideas, & no need to reply if you want to tell me I should have known blah blah, I DIDNT so positive responses only please :-)Thanks xOh & I called suntrust & they just said Oh sorry its tough luck we have dont have to provide a reasonable rate.....

[RichardFitzentite]

You have pretty much answered your own question. It is "tough luck" as Suntrust put it. When your signed mortgage docs you agreed to this seemingly unfair agreement. So in a nutshell, yes this is regulated. The regulation is of the mortgage agreement as a whole, the insurance being a part of it. I believe the conventional wisdom is that mortgage institutions don't want any part of the insurance business, so they do this as a deterrent. To further add to your frustration, I believe that if anything were to have happened, the insurance policy Suntrust put on your loan would have only covered Suntrust's financial interest in the property. Your possession, liability and such would not have been covered. In the future I would have my mortgagee pay my insurance and taxes. You pay a little extra each month and when the bill comes due they pay it for you. That way you will never have to worry about those bills not being paid.Also FYI this is referred to as "placed coverage" by your mortgage company. A "binder" is what an insurance company provides to the mortgage company to prove insurance coverage.