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#1766268 - 12/11/12 09:37 PM Flood determination and 2nd mtgs
ynot Offline
Member
Joined: Sep 2011
Posts: 81
Florida
We have a 1st mtg commercial loan on a property that has a flood determination associated it. We are now doing 2 - 2nd mortgages secured by the same property, do we need to request for 2 flood determinations? In reading the Mandatory Purchase of Flood Insurance Guidelines, it states "If a borrower obtains a home equity or second mortgage from its first mortgagee that is secured by a secondary lein position, and provides evidence that adequate flood insurance coverage is in place for all loans, the lender can rely upon the original SFHDF if no remapping has occured." Does this apply to commercial property as well?

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Flood Compliance
#1766270 - 12/11/12 09:39 PM Re: Flood determination and 2nd mtgs ynot
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,234
Galveston, TX
There is no distinction between commercial and other loans in this regard. The question is, how do you determine there has been no remapping?
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#1766292 - 12/11/12 09:54 PM Re: Flood determination and 2nd mtgs ynot
ynot Offline
Member
Joined: Sep 2011
Posts: 81
Florida
by checking the Federal Emergency Management Agency Community Status Book Report for my state.

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#1766368 - 12/12/12 12:50 PM Re: Flood determination and 2nd mtgs ynot
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,234
Galveston, TX
Then once you document that you are good to go. You may want to check your contract with your vendor however. If this FHD has life of loan coverage, it is usually tied to that specific loan and additional loans may require a separate FHD.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1766473 - 12/12/12 02:35 PM Re: Flood determination and 2nd mtgs ynot
ynot Offline
Member
Joined: Sep 2011
Posts: 81
Florida
Thanks Randy, I will do that.

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