Bank needs to be a loss payee on the home owner policy

[Kevin Lefeuvre]

I am in the process of getting approved for a HELOC and the Bank wants to see a new declaration page with their name on it as a loss payee on the home owner policy. I have never seen this in my previous loans, even though it makes sense to me for them to become a payee after approving the loan.

Can some of you investors and lenders shed light on this matter?  Especially on when this needs to be done.  (before or after approval? )

[Chris Mason]

Originally posted by @Kevin Lefeuvre:

I am in the process of getting approved for a HELOC and the Bank wants to see a new declaration page with their name on it as a loss payee on the home owner policy. I have never seen this in my previous loans, even though it makes sense to me for them to become a payee after approving the loan.

Can some of you investors and lenders shed light on this matter?  Especially on when this needs to be done.  (before or after approval? )

I assume you're talking about the mortgagee / additional interest box. You didn't see it on your previous loans because something in your initial disclosure packet authorized us to go behind your back and get it from the insurance provider directly, and your lender probably did just that. :)