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#186099 - 05/03/04 01:02 PM Flood Insurance
Anonymous
Unregistered

Can a bank accept the flood certification from another lender? Our bank is beginning to participate with our mortgage sub. in that we will be extending a home equity line of credit at the same time the mortgage sub. is closing the first mortgage. They have completed the flood search in their name. Can we use their determination for our home equity?

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Lending Compliance
#186100 - 05/03/04 02:09 PM Re: Flood Insurance
Anonymous
Unregistered

No. You are making a "new" loan and you may not rely on a previous determination.

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#186101 - 05/03/04 02:27 PM Re: Flood Insurance
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,965
TN
And your Lender ID #s are probably different.
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#186102 - 05/03/04 02:47 PM Re: Flood Insurance
waldensouth Offline
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waldensouth
Joined: Nov 2001
Posts: 7,983
FINALLY ABOVE the gnat line
They could assign it to you, but that would mean the Life of Loan coverage they probably have now covers you and their certificate would be useless to them. For HELOCS, and other long term loans, I always tell our banks to get an independent Flood determination. If we're doing a joint loan with our mortgage depart - i.e. construction/perm where we do the construction and they do the perm, the bank pulls the flood for the construction period and assigns it to the permanent lender at closing. So, we're all covered for one price to the consumer.
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