Banks and insurers are expected to make the case at closed-door hearings being held later this week by the Federal Housing Finance Agency that forced-placed homeowner's policies should remain the purview of state regulators. The discussions are part of a broader debate over how to reform the force-placed insurance market. The controversy revolves around claims by consumer advocates, state regulators and others that banks and insurers have colluded to drive up the cost of such coverage, which is "force-placed" on often struggling homeowners who allow their standard hazard policies to lapse.