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#1049551 - 09/24/08 06:17 PM Pulling new flood determinations on modifications
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
It has been our practice to pull a new flood determination whenever we make a modification to a loan. For example, we have lowered the rate on some of our HELOC's and simply did a note modification to reflect the new rate. Nothing else changed.

Since we already pulled a flood previously - and it hasn't been more than 7 years - isn't it just a waste of money to pull a new flood all over again?

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Lending Compliance
#1049576 - 09/24/08 06:35 PM Re: Pulling new flood determinations on modifications Many Hats
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
This could depend on your contract with your vendor. Most, but no all, vendors do their LOL monitoring based on loan number and not the property address and they require you to notify them when the specific loan pays off or refinances.

Also your LOL monitoring may not automatically notify you of a map change. Our vendor only notifies us if the status of the property changes.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1049860 - 09/24/08 09:44 PM Re: Pulling new flood determinations on modifications Dan Persfull
Dollye7 Offline
Gold Star
Dollye7
Joined: Jun 2006
Posts: 255
Southwest USA
Also, if the loan number changes on a "note modification," you should advise the vendor. Otherwise if/when the status of the property does change, the vendors report will show the original loan number which you may show as paid off and the new property flood designation may not "connect" with the new modified note number.

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