Interesting situation that I am teetering and tottering with. We have acquired a customer who refinanced their mortgage with us from a different institution. We did our flood determination and it came back that the property was NOT in a flood zone. I have just received a letter from the customer's flood insurance carrier requesting that we send a letter to cancel the customer's flood insurance. The letter specifically states that we have to include in the letter that at one time we required flood insurance and now do not require it.
My question is, if the other financial institution had a determination that indicated the structure was in a flood zone do we have a discrepancy where we would have to take the more conservative approach? I had our 3rd party determination company recheck to be sure of their findings and they remain firm in their position that the property is not in a flood zone. If I can go with our determination, how to I frame the letter? We never required the insurance.
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