We have a loan proposal where ABC, Inc. owns the mobile home park land and XYZ Company owns the mobile homes on the property. ABC and XYZ are owned by the same individual. The bank is only taking the land as collateral. It is not taking the mobile homes. I am sure we must require flood insurance as a conditon of the loan, since some of the mobile homes are in a flood area. I want to find a regulatory cite or opinion that flood is required in this situation. The loan officer does not want to require flood insurance because the collateral (land)is being taken as an abundence of caution.

If you are not taking the mobile homes as collateral the flood insurance is not required. Are there any structures on the property - sheds, etc.? Your loan officer needs to know that 'abundance of caution' ONLY gets you out of the appraisal requirements - all other regulations apply.

When running a flood determination for mobile homes within a mobile home park (multiple mobile homes are collateral), should the address used on each determination be 123 Street Name - or 123 Street Name, Lot 3?

If multiple structures are located on one parcel of land, refer to the instructions on the back of the form:

MULTIPLE BUILDINGS: If the loan collateral includes more than one building, a schedule for the additional buildings/mobile homes indicating the determination for each may be attached. Otherwise, a separate form must be completed for each building or mobile home. Any attachments should be noted in the comment section. A separate flood insurance policy is required for each building or mobile home.