It has been ten days since my post on the legal reasons why a lending policy to prohibit loans granted if the collateral is in a special flood hazard area.
Good discussion resulted in 4 topics:
Business necessity purpose or Laziness
Nearly all these have been topic of committee discussion as to why not to initiate policy to prohibit new loans to applicants with collateral located in the SFHA. The Lending Policy will take care of new but not existing loans with collateral located in the SFHA.
Another reason is HR3370 which was voted on in Senate according to the March 13th Insurance Journal article.
refer to the link above. My final thought, when including the total annual premuim and with loan amortized payment, will the borrower qualifiy for the application?