Lender-placed insurance exceptions

How do we clear lender-placed insurance exceptions with a second approver and an audit log?

Give every exception one owner and three outcomes. When the insurance tracking vendor flags a loan, Callvu routes the exception to the lender who owns it. The lender waives it, clears it with a document, or sets a follow-up. A waiver needs a named second approver. A document needs the loan number so it files correctly in the tracking system. Every action lands in a 90-day audit log with its date, approver and attachments. Live at Community Bank of Mississippi.

Live at Community Bank of MississippiComplex: multi-party handoffsCallvu moves: classify, chase and verify, decide

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Last updated November 6, 2026.

The problem today

Exceptions are cleared in email, and the examiner asks who approved the waiver.

Today, without Callvu

The insurance tracking vendor sends a report of loans with lapsed, missing or insufficient coverage. Someone forwards it. Lenders answer in email: 'waive this one, the borrower is refinancing', 'certificate attached', 'I will call them next week'. The attachment has no loan number, so the tracking vendor files it against the wrong loan or not at all. The waiver was approved by nobody in particular.

Ninety days later the examiner wants the list of waivers, who approved each one, and the evidence. The answer is an inbox search.

The borrower notice cycle has its own clocks. Under the flood rules a lender must force-place coverage if the borrower has not fixed a deficiency within 45 days of the notice, and under RESPA a residential mortgage servicer must send a 45-day notice and a reminder before it can charge for force-placed insurance. A follow-up that lives in someone's calendar is how a bank force-places a loan that had coverage, or fails to force-place one that did not.

How it runs

From the requestto the system of record.

The insurance tracking vendor flags a loan: a lapsed policy, a missing certificate, a coverage gap, or a flood requirement. Callvu picks up the exception from the vendor's feed.

Insurance tracking vendor: Flags the exception, runs the borrower notice cycle, and remains the long-term system of record for coverage.
Lender: Owns the loan and chooses the outcome: waive, clear with a document, or follow up. Sees only their own exceptions.
Second approver: A named person, chosen by the lender, who approves or rejects a waiver in the Decision Desk.
Callvu: Routes, enforces the second approval, files attachments by loan number, tracks follow-up deadlines, and keeps the audit log.

Classify the exception
Callvu reads the exception type (lapsed, missing, insufficient, flood) and the loan, and assigns it to the lender who owns the loan. Each lender's queue shows only their own loans.
The lender chooses an outcome
Waive the exception, clear it with a document, or set a follow-up. There is no fourth option and no free-text resolution.
Waive: second approval
A waiver cannot stand on the lender's word. The lender names a second approver; the waiver goes to that person in the Decision Desk, who approves or rejects it. A rejected waiver returns to the lender with the other two outcomes still open.
Clear: attach the document
A certificate or policy is attached with the loan number. The loan number is required, so the document files correctly in the insurance tracking system and the exception clears against the right loan. This is the chase and verify move: the document is requested, received and checked against the loan.
Follow up: a tracked deadline
A follow-up gets a date. Callvu tracks it and nudges the lender; the exception stays open and visible until it is waived or cleared.
Write the disposition
The outcome, the approver where there is one, the attachment and the date are written to the tracking system and to the audit log.

Where it ends: The exception is cleared in the insurance tracking system, which stays the system of record. The routing and the approval decision are in the Decision Trace; Callvu keeps a 90-day Audit Trace of every action and produces a weekly log of all dispositions.

Runtime enforcement

What is enforcedwhile the work runs.

The regulations preloaded in Callvu Studio and the bank's own policies, applied as steps that run, not lines in a binder. A step that breaks a rule does not run, so a completed run was compliant.

Regulations

Flood Disaster Protection Act and the interagency flood rules (Regulation H, 12 CFR 208.25): For a loan secured by a building in a special flood hazard area, the lender must require flood insurance. If coverage lapses or is insufficient, the lender notifies the borrower; if the borrower has not obtained adequate coverage within 45 days of the notice, the lender must purchase it on the borrower's behalf. A waiver here is not available: a flood exception can only be cleared or force-placed.
RESPA (Regulation X, 12 CFR 1024.37): On a residential mortgage loan, a servicer may charge for force-placed hazard insurance only after a written notice at least 45 days before the charge and a reminder notice at least 30 days after the first and at least 15 days before the charge. On receiving evidence of coverage, the servicer must cancel the force-placed policy and refund premiums for any period of overlap within 15 days.
Safety and soundness: collateral insurance covenants: On commercial and consumer loans outside RESPA, the loan agreement requires the borrower to keep hazard coverage on the collateral. Clearing an exception, or waiving it, is a credit decision the bank's policy governs, and the examiner expects to see who made it.

Company policies

Each lender sees only their own exceptions.
A waiver needs a named second person, chosen by the lender, to approve or reject it.
An attachment needs the loan number, which files it correctly in the insurance tracking system.
Follow-up deadlines are tracked, not remembered.
The insurance tracking system is the long-term system of record. Callvu's audit log holds 90 days and a weekly disposition log is produced.

Controls

Routing by loan ownership, with per-lender visibility.
Three allowed outcomes, no free text.
Second-approver gate on every waiver.
Required loan number on every attachment.
Tracked follow-up date with nudges and an open status until resolved.

Clocks and deadlines

Flood force placement: 45 days from the borrower notice, on loans in a special flood hazard area.
RESPA force-placed insurance notices: First notice at least 45 days before a charge; reminder at least 30 days after the first notice and at least 15 days before the charge; cancellation and refund within 15 days of evidence of coverage.
Follow-up date: Set by the lender, tracked by Callvu, with the exception open until resolved.

Documents and checks

The exception record from the insurance tracking vendor (loan, exception type, date)
A certificate of insurance or policy declarations page, attached with the loan number
The waiver, with the lender's reason and the second approver's decision
The follow-up record with its date and outcome

In the Decision Trace

The exception type and the rule that routed it to its lender.
The outcome the lender chose and the options that were open.
For a waiver: the named second approver and their decision, with the time.
For a document: the loan number it was filed under in the tracking system.

In the Audit Trace

Every action with its date and the person who took it, kept for 90 days.
Each waiver with its approver.
Each attachment with its date and loan number.
The weekly log of all dispositions.

The handoff

Between the front doorand the back office.

The front door

The front door is a vendor feed, not a customer. The exception arrives from the insurance tracking vendor and is already assigned to a lender when the lender first sees it.

The back office

The disposition, the document and the approval are written to the insurance tracking system. Nobody re-keys a resolution from an email into the vendor portal.

The Decision Desk

A waiver goes to the named second approver in the Decision Desk, with the loan, the exception and the lender's reason, and only two choices: approve or reject.
The approver is nudged until they act, and the waiver cannot take effect without them.

Proof

Live at Community Bank of Mississippi.Published results only.

Each result is a published claim, with its code on agents.callvu.com, where its status, source and last verified date are kept.

At Community Bank of Mississippi, every lender-placed insurance waiver needs a named second approver, and every action is kept in a 90-day audit log with its date, approver and attachments.

BNK-20 · Self-asserted · verified 2026-11-02

Community Bank of Mississippi runs three processes on Callvu: loan processing, lender-placed insurance exceptions and HR reviews.

BNK-11 · Self-asserted · verified 2026-11-02

Community Bank of Mississippi reports zero rework on its live processes.

BNK-18 · Self-asserted · verified 2026-11-02

Questions

What buyers ask next,answered plainly.

Can a lender waive an exception on their own?

No. Every waiver goes to a named second approver, chosen by the lender, who approves or rejects it in the Decision Desk. The approver's decision is in the audit log with its date.

Does Callvu replace the insurance tracking vendor?

No. The vendor keeps flagging exceptions and running the borrower notice cycle, and its system stays the long-term system of record. Callvu runs what the bank does with each exception and writes the result back.

Why is the loan number required on an attachment?

Because an attachment without one files against the wrong loan or not at all. With the loan number, the document clears the right exception in the tracking system.

What does the examiner get?

A 90-day audit log of every action with its date, the waiver approver and each attachment, and a weekly log of all dispositions.

Can a flood exception be waived?

Not under the flood rules. A flood exception is cleared with evidence of coverage or force-placed after the 45-day notice. The bank's policy decides which outcomes each exception type allows, and Callvu offers only those.

Related processes

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