Lender-Placed Insurance FAQ

Depending on your loan type, if you don’t provide us with proof of suitable insurance coverage, ditech may obtain an insurance policy on your behalf (lender-placed insurance) pursuant to state guidelines.

This coverage is generally basic coverage that provides insurance protection only to the lender for the amount of the loan balance (minus any financed insurance, points and land). You’ll be responsible for paying the monthly premiums on lender-placed insurance coverage. Note that this coverage is often more expensive than regular insurance coverage you can obtain on your own.

Learn more on our Understanding Lender-Placed Insurance page in the Mortgage Topics in Depth section.

Lender-placed insurance is issued only when we have no record of other insurance coverage and is effective only for the lapse period. Upon receiving evidence of in-force insurance that covers the lapse, the lender-placed policy can be fully or partially cancelled based on the effective dates of the coverage provided.

Learn more on our Understanding Lender-Placed Insurance page.