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#1695491 - 05/03/12 07:09 PM RCV vs ACV - Is this owner occupied?
Kelsey D Offline
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Joined: Aug 2006
Posts: 516
We have a commercial loan secured by multiple properties, one of which is in a flood zone. I know that the insurable value is less than the loan amount and the NFIP maximum, but I can't decide if the insurable value is RCV or ACV, and the two amounts differ by about $40,000. In this situation, the commercial customer has a loan on a property that is being sold via land contract. The property is occupied by the buyer, but who is the owner? Is it owner-occupied? Our customer, the seller in the land contract, is purchasing the flood insurance, if that matters. Thank you in advance for your help.
Don't make me say, "I told you so!" Sincerely, your friendly Compliance Officer.

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Flood Compliance
#1695524 - 05/03/12 07:44 PM Re: RCV vs ACV - Is this owner occupied? Kelsey D
WI Banker Offline
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Joined: Dec 2006
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#1695664 - 05/04/12 12:31 PM Re: RCV vs ACV - Is this owner occupied? Kelsey D
rlcarey Offline
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Joined: Jul 2001
Posts: 79,637
Galveston, TX
Maybe, maybe not, it depends on what is meant by a "land contract". Who is the current titled owner? If it is still the borrower - refer to the linked post.
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