Legal

Insurers, Lenders Fight Over Foreclosure’s Policy Impact 

The case of U.S. Bank v. Tennessee Farmers Mutual Insurance Company*, currently on appeal to the Tennessee Supreme Court, addresses an important issue for the mortgage banking and servicing industry regarding the “standard mortgage clause” contained in most homeowners insurance policies. The issue is specific to the terms of policy issued by Tennessee Farmers Mutual Insurance Company (“Tennessee Farmers”) as applied to Tennessee law, but the Tennessee Supreme Court’s final decision may impact the notice requirements for Tennessee foreclosures.