Our Compliance people are telling us the 45 Day Letter must be sent the day of expiration to be compliant. We were cited for sending it 10 days after expiration. Is this the case, or can we send it "when we are notified of expiration" which sometimes may be a month. We've not been able to find anything as to when the 45 day letter "must" be dated.

Your "Compliance people" are correct in that the Flood Book (pg 55) says, "If at any time during the term of a covered loan, the lender or servicer determines that the building securing the loan is not covered by flood insurance,...the lender or servicer must first notify the borrower of the need to carry adequate flood insurance coverage."

On day 1 after the expiration date, if you're aware the insurance has not been renewed, you need to notify your borrower. Keep in mind, your 45-day countdown can't begin UNTIL you've notified the borrower. So, if you're waiting 'til day 10, not only have you failed to notify them in a timely manner, you've also extended the time-frame for the borrower to obtain insurance at their expense and increased the amount of your expense to protect the collateral.