My bank has started doing third party originated loans. My question is which bank is responsible for the flood determination? The originating bank or the one that closes the loan?

Explain what you mean by "third party originated loans".

One bank originates a loan, in this case a secondary market loan. It is then sent to my bank to close. This is the first loan of this type we have done so I am in unchartered territory.

I don't know that we can answer "which bank is responsible". The loan can't be closed without a SFHDF (or the notice & insurance, if applicable). Someone has to do it. This should be detailed in your agreement.

This sounds like a table-funded loan which is addressed specifically in the regs. Actually, you don't need to get much farther than the "Authority, Purpose, and Scope" section of the reg to find that it applies to loans, so the burden of compliance falls first on the lender to whom the mortgage note will be payable.

You mean the servicer of the loan?

You need to be more specific regarding the creditor in the transaction. You say one bank originates the loan, but you close it. Who is the original creditor on the documents?

My bank is the lender on the note and we assigned that note to Freddie and a servicer.

You then have full responsiiblity for all regulatory compliance issues.

Thank you.