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#1756211 - 11/07/12 08:27 PM Life of Loan Survey Update
Christine81 Offline
Member
Joined: Mar 2011
Posts: 78
We received notification from our Life of Loan Vendor that they received a survey which now indicates our customers property is in a flood zone. There has not been a map update. Based on the survey information are we required to have our borrower purchase flood insurance?

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Flood Compliance
#1756216 - 11/07/12 08:29 PM Re: Life of Loan Survey Update Christine81
Dani York, CRCM Offline
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Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
How did they receive the survey?

Regardless, since the bank is now in a position to know that the property is in an SFHA and is underinsured (ie no isurance), you will need to send the appropriate flood notice and begin the 45 day forceplacement process.
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

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#1756230 - 11/07/12 08:49 PM Re: Life of Loan Survey Update Christine81
Christine81 Offline
Member
Joined: Mar 2011
Posts: 78
I am not sure how they received the survey. I thought we would have to send the notice and start the process, but wanted confirmation for the push back I'm anticipating from the lender. Thanks for your prompt response.

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#1756236 - 11/07/12 08:54 PM Re: Life of Loan Survey Update Christine81
Dani York, CRCM Offline
Power Poster
Dani York, CRCM
Joined: Apr 2005
Posts: 3,663
TN
Originally Posted By: Christine81
wanted confirmation for the push back I'm anticipating from the lender.


In case he asks for "proof". see page 40 of the mandatory purchase guidelines here:

http://www.fema.gov/library/viewRecord.do?id=2954

The Act requires the force placement of
flood insurance if a servicer or lender
determines that the building securing the
loan is not adequately insured.
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

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#1756239 - 11/07/12 08:56 PM Re: Life of Loan Survey Update Christine81
Christine81 Offline
Member
Joined: Mar 2011
Posts: 78
Thanks, I have tagged it in my book.

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