§ 1005.831. Cancellation of hazard insurance.
137 words·~1 min read·
/us/cfr/t24/s§ 1005.831·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Holder shall cancel any hazard insurance policy as of the date of the deed to HUD, subject to the following conditions:
(a)The amount of premium refund due to the Servicer resulting from such cancellation must be deducted from the total amount claimed.
(b)If the Holder's calculation of the premium refund is less than the actual premium refund, the amount of the difference between the actual refund and the calculated refund shall be remitted to HUD, accompanied by the insurance company's or agent's statement.
(c)If the Holder's calculation of the premium refund is more than the actual refund, the Servicer must include in a supplemental Claim submission in accordance with § 1005.809(c), accompanied by the insurance company's or agent's statement, the amount of the difference as an eligible cost in accordance with § 1005.843(c).