US FederalCan a lender require me to use a specific insurance provider for my mortgage?
No, a lender cannot require you to use a specific insurance provider for your mortgage under federal law. The Real Estate Settlement Procedures Act (RESPA) prohibits lenders from mandating particular title insurance or other settlement service providers as a condition of lending.
What the Law Says
The Real Estate Settlement Procedures Act (RESPA) protects borrowers from abusive practices in real estate settlements, including coercive requirements about insurance and other services.
Under federal law, lenders may not require borrowers to use a particular provider for settlement services—including title insurance, hazard insurance, or other insurance related to the mortgage—as a condition of approving the loan. This prohibition helps ensure competition and prevents kickbacks or referral fees that inflate costs for consumers.
While RESPA does not explicitly mention 'hazard' or 'homeowners insurance' in § 2601, courts and regulators interpret the statute’s broad purpose and definitions—especially its focus on 'settlement services'—to cover insurance required as part of the mortgage transaction when tied to closing or servicing.
Statutory TextThe Congress finds that significant reforms in the real estate settlement process are needed to eliminate unnecessary costs and delays in the transfer of residential real property.
— 12 U.S.C. § 2601 — Congressional findings and purpose
What to Do
Review your loan estimate and closing disclosure for any language requiring a specific insurer.
If your lender insists on a particular provider, ask for written justification—and note that RESPA prohibits this unless the service is truly provided by the lender itself (e.g., affiliated business arrangement with full disclosure and no coercion).
File a complaint with the Consumer Financial Protection Bureau (CFPB) at www.consumerfinance.gov/complaint.
Keep records of all communications and disclosures related to insurance requirements.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.