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#1755868 - 11/07/12 03:07 PM Preferred Risk Policy
Sugarbaker Offline
Gold Star
Joined: Nov 2005
Posts: 265
Is it the lenders responsiblity to make sure a borrower qualifies for a preferred risk policy?

We have a borrower whose property has been in a flood plainf or the 10 years we have had the loan. Now the agent is issuing PRP policies showing rated zone x and current zone A. We questioned the last policy, the agent said he would look into it. We get a renewed policy dec sheet and once again it is stated that it is a PRP. We don't believe it is since this property has been in a flood zone for many years, but is this a battle we should fight as long as they show the current zone as correct?

Not really sure what to do with this - maybe bankers can just start underwriting and issuing the policies too - I think it would be easier. The agents don't seem to have any responsiblity ensuring they are correct. Stepping off my box . . .

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Flood Compliance
#1755900 - 11/07/12 03:38 PM Re: Preferred Risk Policy Sugarbaker
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,637
Galveston, TX
As long as a policy in hand meets the regulatory requirements, what the agent is doing to the customer is between them.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1755909 - 11/07/12 03:41 PM Re: Preferred Risk Policy Sugarbaker
Sugarbaker Offline
Gold Star
Joined: Nov 2005
Posts: 265
Thanks Randy.

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