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#142800 - 12/23/03 04:10 PM flood question
Jokerman Offline
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Joined: Nov 2003
Posts: 12,846
item from examiner's flood procedures:

"If the institution sells or transfers the servicing of designated loans to another party, does it have procedures in place to provide the appropriate notice to the insurance carrier within 60 days of the effective date of the transfer of the servicing?"

Does anyone know what form this "appropriate notice" is supposed to take? We sell very few loans (maybe 20 per year) on the secondary market, and they are sold servicing-released. The officer in charge of the program indicates that the insurance carrier is told that the loan will be sold to such-and-such bank, but the policy must come in Our Bank, ISAOA.

Is there a formal notice to be provided, should the carrier acknowledge it, etc.? Thanks in advance for your help!

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Lending Compliance
#142801 - 12/23/03 04:20 PM Re: flood question
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,464
Bloomington, IN
Mandatory Puchase of Flood Insurance Guidlienes

Click on the above link and then click on Notice Requirements. It will give you a sample notice. I believe it's on page 4 or 5 of the document.

It's on page 7.
Last edited by dpersfull; 12/23/03 04:34 PM.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#142802 - 12/23/03 05:45 PM Re: flood question
Jokerman Offline
10K Club
Joined: Nov 2003
Posts: 12,846

Thanks. Do you know if there is a prescribed form of which a copy should be kept? Or as long as that information is communicated in some manner, are we ok?

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#142803 - 12/23/03 06:00 PM Re: flood question
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,464
Bloomington, IN
Off the top of my head without going back and reading, I do not believe you are required to use the exact wording of the notice. As long as your notice has the required notification and information in it you should be OK if you design your own.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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