W. Va. Code R. § 106-19-14

Current through Register Vol. XLI, No. 36, September 6, 2024

Section 106-19-14 - Special Provisions Regarding Payment of Real Estate Taxes and Insurance

14.1. Insurance Selection. -- Mortgagor(s) shall have the right to choose a property insurer(s) subject to the lender's consent which shall not be unreasonably withheld. If the mortgagor(s) fails to choose a property insurer(s) in a timely manner or if the insurer(s) is not acceptable to the lender, then the lender may insure the property with a carrier of its choice.

14.2. Advance Funds for Taxes and Insurance. -- If there is no escrow account, then the lender may advance the funds necessary to pay for insurance coverage or to pay real estate taxes and to reimburse itself in the following ways:

14.2.a. by deducting necessary amounts from a reserve fund;

14.2.b. by withholding from one or more monthly payments otherwise due to the mortgagor(s) no more than 25% of each monthly payment; or

14.2.c. by adding the amount to the loan principal.

If a reserve fund has been established, then, to the extent possible, the lender must reimburse itself from such fund before choosing subdivision 14.2.b or 14.2.c above. If a reserve fund has not been established, then the lender may choose whether to proceed according to subdivision 14.2.b or 14.2.c or a combination of these subdivisions.

W. Va. Code R. § 106-19-14