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#1479199 - 12/10/10 07:24 PM Force placing Flood Insurance
VWgirl21 Offline
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Joined: Jan 2008
Posts: 199
The Bluegrass
While auding flood loan files, I found one loan that was secured by a property, and due to remapping, is now in a flood zone. Instead of going ahead and sending the 45-day force placement letter, the loan department contacted the lender asked them to contact the customer about getting flood insurance. When that didn't work, the loan department finally sent the 45 day letter to the borrower about three months after initially discovering the property was in a flood zone. My question is, is there anywhere in the REG, FAQs or Mandatory Purchase that says when that letter should have been sent? I know we have messed up and I trying to figure out how bad.

Thank you for any assistance with this.
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Lending Compliance
#1479437 - 12/11/10 02:33 AM Re: Force placing Flood Insurance VWgirl21
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
The letter should have been sent at the time the bank first realized the property was in a SFHA.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1479674 - 12/13/10 04:45 PM Re: Force placing Flood Insurance rlcarey
VWgirl21 Offline
100 Club
Joined: Jan 2008
Posts: 199
The Bluegrass
Thank you for your help!
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#1482573 - 12/17/10 08:33 PM Re: Force placing Flood Insurance VWgirl21
ledfoot Offline
Member
Joined: May 2004
Posts: 93
Georgia
Recently one of my lenders said he was told that flood insurance must be renewed 10 prior to expiration date of the insurance. I've never heard that before. I thought as long as it was renewed before policy lapsed (i.e. annual premium paid), it was fine. If it isn't paid and insurance lapse, then they have 45 days to get new insurance or we force place. Is that not correct?
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#1482639 - 12/17/10 09:57 PM Re: Force placing Flood Insurance ledfoot
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
The loan officer was told wrong.
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The opinions expressed are mine and they are not to be taken as legal advice.

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