For purposes of lender-placed insurance, an affiliated entity is defined as
an entity owned or controlled, in whole or in part, by the servicer including, but not limited to, a subsidiary or joint venture of the servicer;
an entity that owns or controls, in whole or in part, the servicer (for example, the parent company of the servicer); or
an entity under common ownership or control with the servicer (for example, two subsidiaries of the same parent company).
An affiliated entity does not include a publicly traded company where the servicer owns less than 5% of its stock.
For more information please see: B-6-01, Lender-Placed Insurance Requirements.