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#176321 - 04/02/04 05:21 PM Flood Determinations on Renewals & extensions
nancy h Offline
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I'm sorry for asking a dumb question, but I need to make sure, if we renew/extend an improved real estate loan, do we have to have a new determination in file, or can we rely on the original one. Thanks!

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#176322 - 04/02/04 05:29 PM Re: Flood Determinations on Renewals & extensions
Beagles22 Offline
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In Wisconsin at least I think the rule is if it is 7 years old and we are either renewing or extending the loan, or refinancing with a new loan, we need a new flood certification. We do life of loan determinations but our bank policy is that we do a new flood certification if it is any older than 6 years. I don't know if that is a state specific rule or a national reg though.
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#176323 - 04/02/04 05:43 PM Re: Flood Determinations on Renewals & extensions
RR Joker Offline
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The general rule is that as long as it's on the proper form, it is good for 7 years, assuming there has been no change in the mapping. However, you need to check with your flood provider if you are using life-of-loan and make sure they will extend over..they may simply need the new loan number or maturity date. Otherwise, they may require a new determination.
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#176324 - 04/28/04 06:48 PM Re: Flood Determinations on Renewals & extensions
Johncrcm Offline
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Eastern KY
Quote:

The general rule is that as long as it's on the proper form, it is good for 7 years, assuming there has been no change in the mapping. However, you need to check with your flood provider if you are using life-of-loan and make sure they will extend over..they may simply need the new loan number or maturity date. Otherwise, they may require a new determination.




A "very nice" OCC examiner has pulled a sample of HELOC files. Found in these files are SFH determinations which were xerox copied and of course all had the determination date prior to the HELOC application. I was just informed that this practice is a violation and will be cited as one in the final report. I believe the determination is made by our personnel, our lending officer or a clerk in loan administration.

I have researched this information several years ago and somewhere it says just what is stated in Joker's quotation from April 2,2003, the life of a determination is generally 6-7 years and it is up to the lending inst. to determine their own policy, which covers renewals, new loans with the same applicant, etc. Where may I find it now?

What is the ruling on the practice of using existing determination forms, which of course, completed correctly?

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#176325 - 04/28/04 08:33 PM Re: Flood Determinations on Renewals & extensions
SMQ, CRCM Offline
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John, if I understand correctly, your problem came about from using an existing SFHD for a NEW loan. A new determination must be made for each new loan, silly, but that's it. We had the same issue with our lenders wanting to make the mortgage loan and HELOC using the same form.

See page 33 of the guide.
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#176326 - 04/28/04 08:38 PM Re: Flood Determinations on Renewals & extensions
SMQ, CRCM Offline
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Between the lines
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#176327 - 04/28/04 08:44 PM Re: Flood Determinations on Renewals & extensions
Deena Offline
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PA
Quote:

John, if I understand correctly, your problem came about from using an existing SFHD for a NEW loan. A new determination must be made for each new loan, silly, but that's it. We had the same issue with our lenders wanting to make the mortgage loan and HELOC using the same form.

See page 33 of the guide.




SoccerMom, you should be able to use the same determination for the HELOC that you use for the mortgage. See the bottom of page 33 and also the links to the other discussions from the link you posted.
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#176328 - 04/28/04 09:35 PM Re: Flood Determinations on Renewals & extensions
SMQ, CRCM Offline
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Between the lines
Oops, got me. We sell our mortgages so we do not get LOL on these. We keep the HELOC so we do a separate determination with LOL for our files or we may have made the HELOC years after the original mortgage loan. Oh, and we eat the cost for the second one when we are doing loans at the same time.

A previous determination may not be reused when making a new loan.

So that means that you can NOT use the same form when??
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#176329 - 04/29/04 04:59 AM Re: Flood Determinations on Renewals & extensions
David Dickinson Offline
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Central City, NE
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