Insurance

What is a tax and/or insurance escrow?
A tax and/or insurance escrow is an agreement between the lender and borrower where the borrower pays monthly into an account an amount equal to 1/12th the total property tax and/or hazard insurance premium due for a 12 month period plus a two month cushion, which helps offset any future tax and/or insurance increases.  The escrow account is administered by the lender and is most often a non-interest bearing account. The escrow funds are disbursed by the lender for payment of property tax and hazard insurance premiums when due.

What are the Escrow Services Department hours?
Escrow specialists are available Monday through Friday from 8AM to 5PM.

I would like to have First National Bank of America set up an escrow for taxes and/or insurance. What do I do?
If you wish to establish an escrow account, contact our Escrow Department at: (800)266-7661.

I just received my escrow analysis. Why did my monthly escrow payment increase?
An escrow payment is increased after an escrow analysis has been performed by First National in which the property tax or hazard insurance amounts have increased from the previous year. First National pays your taxes and/or insurance in the amount billed by your tax collector or insurance company. Please contact your local tax collector or insurance company for information pertaining to tax amounts, increases or decreases, assessed values, tax rates, copies of your tax receipts and insurance premium information.

What is a CPI fee?
Current property insurance is required to be on file for most loans. If your insurance changes in any way, please send a copy of the new policy to us. If we do not have evidence of active property insurance on file, we may obtain coverage on the current balance due only, (called Collateral Protection Insurance or ‘CPI’) from an agency of our choice and your account will be charged accordingly.

Where is the CPI Fee and CPI Premium listed on my invoice? The CPI premium is listed on the front of your monthly invoice as collateral protection insurance due. The amount listed is the premium for the month. The monthly CPI fee, currently $7.50, is discussed on the reverse side of your monthly invoice. Any unpaid CPI fees accumulate on the front of your monthly invoice as part of the outstanding fees due amount.

I have my own insurance, so why am I being charged a CPI (collateral protection insurance) fee?
If you have a current hazard insurance policy it is possible to discontinue the “CPI” charges. To show that you have a current hazard insurance policy, contact your insurance provider. Ask your insurance company to fax a copy of the “declaration” page or proof of insurance to (517)336-0497. Make sure they list First National Bank of America as the mortgagee. Please allow 2-3 days for this information to be updated before calling to verify receipt. The CPI fee may be removed if you provide sufficient proof that you had insurance in affect when the CPI fee was assessed.

My insurance company wants the “mortgagee clause” to add to the declaration page of my insurance policy. What is it?
FNBA-ISAOA/ATIMA
P.O. Box 980
East Lansing, MI 48826

My property was damaged, what should I do?
1. Contact your insurance company to begin the claims process and notify First National’s Insurance Department at (800)266-7661.
2. If your property is covered through First National’s Collateral Protection Insurance contact First National’s Insurance Department at (800)266-7661 to begin the claims process.

I had to make a claim against my Homeowners Insurance. What should I do with the check?
Follow this Insurance Claim Checklist:
1. Send in insurance claim check endorsed by you.
2. Send or fax a copy of the insurance claim to First National.
3. Send or fax a copy of the adjuster’s estimate.
4. What is the plan for repair or rebuild?

If the work is to be done by your self:
a. Payments must be up to date on your account.
b. Up to 1/3 of funds will be disbursed upfront to begin work.
c. You must provide pictures (before, during, and after) and receipts to show work completed for disbursement of funds.
d. Disbursement Checks will be sent payable to borrower.

If the work is being done by a contractor:
a. Payments must be up to date on your account
b. Send a copy of the Contractors estimate
c. Up to ½ of funds will be disbursed for the contractor to begin work. The check will be sent to the borrower and will be payable to the borrower and the contractor.
d. You must provide pictures (before, during, and after) and receipts to show work completed for disbursement of funds.
e. When the work is complete, the contractor must sign a “Lien Waiver”
f. Borrower must sign a “Statement of Satisfaction” when the work is complete.
g. Final Disbursement checks for contractor’s work will be payable to the borrower and the contractor with the check being sent to the borrower. Please call our insurance department for assistance at: (800)266-7661 ext. 8960