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#1491538 - 01/07/11 05:20 PM Flood Insurance Regulations
djkcpa Offline
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djkcpa
Joined: Jan 2005
Posts: 12
PA
Looking for a little guidance. When issuing forced placed insurance to a borrower, is the current principal balance used to detrmine the forced placed amount of insurance coverage? Or is there another way of detrmining the amount of insurance coverage?

Thanks in advance for any assistance.

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#1491584 - 01/07/11 05:47 PM Re: Flood Insurance Regulations djkcpa
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,965
Galveston, TX
It would be at a minimum, the lesser of the current principal balance, the amount of the improvements or the maximum amount of insurance available, unless for safety and soundness reasons the bank was requiring more insurance.
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