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#2031687 - 08/04/15 10:55 PM Flood Determination Form Required?
banker-12 Offline
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Joined: May 2007
Posts: 1,199
Do we need a flood determination form for a loan secured by vacant unimproved property if we know that they are going to build on it with their own funds (the loan proceeds is only to purchase the vacant land not for the improvements)?

thanks,

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Flood Compliance
#2031690 - 08/04/15 11:22 PM Re: Flood Determination Form Required? banker-12
Princess of Power Offline
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Princess of Power
Joined: Aug 2002
Posts: 406
Napa, CA
No you do not

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#2031691 - 08/05/15 12:17 AM Re: Flood Determination Form Required? banker-12
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
No. Deal with the improvements if and when you have a request for that financing.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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#2031831 - 08/05/15 04:11 PM Re: Flood Determination Form Required? banker-12
banker-12 Offline
Diamond Poster
Joined: May 2007
Posts: 1,199
Ok thanks.
The appraisal is considering the improvements even though we are not financing the improvements so we were not sure whether we needed it or not.

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#2031842 - 08/05/15 04:40 PM Re: Flood Determination Form Required? banker-12
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
Was an "as completed" appraisal requested anticipating the future improvements?

Make sure the file is well documented as to the purpose of THIS loan.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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#2031864 - 08/05/15 05:18 PM Re: Flood Determination Form Required? banker-12
banker-12 Offline
Diamond Poster
Joined: May 2007
Posts: 1,199
Yes the appraisal was requested anticipating the future improvements.
The purpose of the loan is documented for the purchase of the vacant land.... but it also states the future improvements that will be done at no cost to the borrower ( parent of borrower is paying for the cost of the improvements).

Thanks

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#2031873 - 08/05/15 05:41 PM Re: Flood Determination Form Required? banker-12
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
Oh! So the property is definitely going to be improved without a loan and your lien will extend to the improvements (unless your mortgage excludes improvements which would be unusual)!

In that case, I would get a flood determination and advise that you will need evidence of insurance once the structure starts to go up.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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