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#1652034 - 01/18/12 03:21 PM Flood Notice Help
Anonymous
Unregistered

I'm sure this is an easy answer but I need an anwer quickly. If a Guarantor is on a loan (in a flood zone) but is unrelated to the borrower do we need to obtain both signatures on the Flood Notice? Where is the documentation to prove this? Thanks

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#1652041 - 01/18/12 03:37 PM Re: Flood Notice Help Anonymous
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,341
Galveston, TX
Page 34 of the MPFIG:

(1) Notice of Special Flood Hazard and
Availability of Federal Disaster Relief
Assistance
Lenders must provide written notification to
those prospective borrowers whose loans
secure a building located in an SFHA. The
purpose of the notice is to advise the
borrower about the Federal flood insurance
coverage requirements and whether Federal
disaster relief assistance is available in that
location. In the case of multiple applicants
on a single loan, the lender and borrowers
typically designate the borrower to whom
the notice will be provided. Lenders may
provide multiple notices at their discretion.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1652222 - 01/18/12 06:17 PM Re: Flood Notice Help Anonymous
Anonymous
Unregistered

Our system is set up to print the signature line for the guarantor only and not the borrower. Would this still be ok?

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#1652229 - 01/18/12 06:34 PM Re: Flood Notice Help Anonymous
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,341
Galveston, TX
Depends on how you choose to define borrower. Normally, a guarantor is not a borrower, but I'm not sure that the term is specifically defined in the flood regulations.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1652233 - 01/18/12 06:23 PM Re: Flood Notice Help Anonymous
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,020
Bloomington, IN
Quote:
Lenders must provide written notification to those prospective borrowers



The notice must be provided to the borrower(s) and they are the ones required to acknowledge receipt of the notice.

A guarantor is not a borrower.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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