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#1515857 - 03/01/11 11:33 AM Flood Insurance Notice
ckane71 Offline
Member

Registered: 06/26/06
Posts: 55
Do you have to inform a borrower of their continual need for flood insurance annually or at time of loan renewal on a property that is currently in a flood zone?

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Flood Compliance
#1515885 - 03/01/11 11:59 AM Re: Flood Insurance Notice [Re: ckane71]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50412
Loc: Galveston, TX
The only notice required is if they let their insurance lapse.
_________________________
The opinions expressed are my own, take them or leave them.

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#1515902 - 03/01/11 12:23 PM Re: Flood Insurance Notice [Re: rlcarey]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40963
Loc: Bloomington, IN
Quote:
or at time of loan renewal on a property that is currently in a flood zone?


This would require a new notice.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1515995 - 03/01/11 02:17 PM Re: Flood Insurance Notice [Re: Dan Persfull]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50412
Loc: Galveston, TX
Dan - thanks, I guess I failed to read the second half of the question....
_________________________
The opinions expressed are my own, take them or leave them.

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#1516024 - 03/01/11 02:44 PM Re: Flood Insurance Notice [Re: rlcarey]
ckane71 Offline
Member

Registered: 06/26/06
Posts: 55
Thanks for the help.

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#1521449 - 03/14/11 03:37 PM Re: Flood Insurance Notice [Re: ckane71]
nikki_compliance Offline
Gold Star

Registered: 03/19/10
Posts: 464
Loc: NM
what if we have a flood map change and we mail out the letter along with the Flood Notice and we don't recieve it back from customer we just get Insurance from agent via fax or mail. do we have to have the signed copy of is just the letter good enough?

thank you.

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#1521465 - 03/14/11 03:56 PM Re: Flood Insurance Notice [Re: nikki_compliance]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40963
Loc: Bloomington, IN
You have to have acknowledgement the notice was received. We send ours certified with a return receipt requested.

And before anyone asks. No, receiving the policy would not acknowledge receipt of the notice. All that acknowledges is you told them they needed flood insurance and they got it but it does not acknowledge you sent the notice. As for as the examiner is concerned you told them over the telephone they needed the insurance which does not meet the notification requirements.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1521730 - 03/15/11 10:09 AM Re: Flood Insurance Notice [Re: Dan Persfull]
nikki_compliance Offline
Gold Star

Registered: 03/19/10
Posts: 464
Loc: NM
well we didn't notify by telephone we sent them a letter and in the letter did notify that we were sending the Flood Notice and that they would need to send it back to us signed.

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#1521742 - 03/15/11 10:24 AM Re: Flood Insurance Notice [Re: nikki_compliance]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40963
Loc: Bloomington, IN
Then you need to follow-up to get the acknowledgement.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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