Flood Determination & Loan Renewals
Answer by Andy Zavoina and Lucy Griffin
Question: If you have a flood determination that is 5 yrs. old and renew the loan (on the same property, no new money), a new determination is done 3 days after the renewal are you still covered by the earlier determination?
Answer by Andy Zavoina: BIO AND CONTACT INFO
The earlier determination would still be valid if it was recorded on the SFHDF within the previous seven years and there were no map revisions or updates affecting the security property since the original determination was made. This would generally be easily demonstrated if the prior determination was for life-of-the-loan coverage.
Answer by Lucy Griffin: BIO AND CONTACT INFO
The determination is good for 7 years unless the flood maps have been changed. When you renew the loan, you should make sure that any life-of-loan tracking will continue on the new loan. Otherwise, you will have to start over. However, as Andy points out, you are still ok for a few days or more.
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