Is my mortgage company in breach if the mortgage is sold and the terms are skewed?

Your recourse is to insure that you have current homeowner coverage as required by you rmortgage loan contract. Then you send proof of such insurance to the lender involved. It is not your lender's job to insure that YOU provide insurance. If YOU let your insurance lapse for any period of time, you WILL be charged for LPI for any such period of lapse.