Waive the Flood Insurance?
Answer by Dan Persfull, BOL Guru Guru Bios
Question: We have a loan for a farm area and the flood determination came back zone AE. The land is appraised at $390,000 and the structures are appraised at about $100,000, which is the amount of the loan. Can the loan officer waive the requirement for flood insurance because the value of the land is far greater than the amount of the loan?
Answer: Absolutely not. Flood insurance is not required for the bank's benefit, it's required to protect the National Flood Insurance Program.
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