Can a loan's maturity date be extended if the flood insurance is force placed but is of an adequate amount? or does a customer have to obtain their own policy before it can be extended?

I think not. The Mandatory Purchase manual (page 41) says:

Force placement of flood insurance is intended only as a last resort, and on mortgages whose mortgagors have failed to respond to the notifications required by law.

Al

This was force placed as a last resort. The customer's Condo Association is obtaining an RCBAP that will have a 30-day waiting period. So we cannot refinance the loan until the new policy is effective and we cannot cancel the currently placed force-placed insurance for the same reason. The loan's maturity will expire if we don't extend it. Since the force-placed insurance is adequate, couldn't we just extend the loan's maturity out for 30-days? We are in a catch 22.

Opinion from 2007

See post #809060