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#2034398 - 08/18/15 09:10 PM Zone B now Zone AE question
HRH Okie Banker Power Poster Joined: Jan 2003 Posts: 3,070 Oklahoma	Customer has flood policy coverage for property in a Zone B. The zone has now been changed to AE based on map updates. The increase in premiums at this renewal, from zone B to Zone AE, is being quoted at $9300 for the NFIP policy, an exorbitant increase. What are our options if the customer does not pay that premium? Thanks. All help is very much appreciated. _________________________ Just working here until I get my letter from Hogwarts.
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Flood Compliance

#2034411 - 08/18/15 09:40 PM Re: Zone B now Zone AE question HRH Okie Banker
MyBrainHurts Platinum Poster Joined: Feb 2010 Posts: 960 Illinois	Other than the obvious force placement, my first thought is to check the amount of the policy coverage. Perhaps he's being quoted a premium for more insurance than your bank will require. _________________________ I thought getting old would take longer.
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#2034416 - 08/18/15 10:03 PM Re: Zone B now Zone AE question HRH Okie Banker
David Dickinson 10K Club Joined: Nov 2000 Posts: 18,763 Central City, NE	Wow! That is exorbitant. Other than what MyBrainHurts mentioned, these are the only options: 1. Require the borrower to purchase the insurance, 2. force place the insurance and charge them for it, 3. Drop the collateral, 4. Call the loan. Unfortunately, banks are the gatekeeper. _________________________ David Dickinson http://www.bankerscompliance.com
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#2034425 - 08/18/15 10:58 PM Re: Zone B now Zone AE question HRH Okie Banker
Kathleen O. Blanchard 10K Club Joined: Dec 2000 Posts: 21,293	https://www.fema.gov/media-library-data/...inFS_100814.pdf Regardless of premium, your customer must maintain insurance or the bank must force place. _________________________ Kathleen O. Blanchard, CRCM "Kaybee" HMDA/CRA Training/Consulting/Mapping The HMDA Academy www.kaybeescomplianceinsights.com
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#2034509 - 08/19/15 03:01 PM Re: Zone B now Zone AE question HRH Okie Banker
HRH Okie Banker Power Poster Joined: Jan 2003 Posts: 3,070 Oklahoma	Thank you everyone. Your help is appreciated. It does appear that the borrower carries more insurance than necessary so we will talk to her about that too. _________________________ Just working here until I get my letter from Hogwarts.
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#2034517 - 08/19/15 03:24 PM Re: Zone B now Zone AE question HRH Okie Banker
Kathleen O. Blanchard 10K Club Joined: Dec 2000 Posts: 21,293	Well, just don't "advise" her on how much to have! I would tell her to speak with her agent about the best coverage to maintain to protect the property. _________________________ Kathleen O. Blanchard, CRCM "Kaybee" HMDA/CRA Training/Consulting/Mapping The HMDA Academy www.kaybeescomplianceinsights.com
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#2034637 - 08/19/15 07:41 PM Re: Zone B now Zone AE question HRH Okie Banker
HRH Okie Banker Power Poster Joined: Jan 2003 Posts: 3,070 Oklahoma	Thanks Kathleen. It appears that we are working with an insurance agent that is not the most experienced in these matters. We are walking them thru/talking to them and the customer to get the policy amount reduced. This is the easiest one we've worked on, I can tell you. _________________________ Just working here until I get my letter from Hogwarts.
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#2034713 - 08/20/15 03:26 AM Re: Zone B now Zone AE question HRH Okie Banker
rlcarey 10K Club Joined: Jul 2001 Posts: 83,393 Galveston, TX	Define "more insurance than necessary". You mean they have more insurance than the property is worth or more than what you are requiring them to have? Those are two very different things and you should not be involved in that conversation at all unless you want to get the bank sued when the property floods and the they leave insurance proceeds on the table because you advised them to reduce their coverage. You tell them the minimum that the bank requires and you let them deal with their insurance agent for anything else. You are not in the insurance business, you do the banking part. Don't ever put yourself in the role of advising anyone on insurance as all you are doing is putting the bank at risk for absolutely no return. _________________________ The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2035063 - 08/21/15 02:20 PM Re: Zone B now Zone AE question rlcarey
HRH Okie Banker Power Poster Joined: Jan 2003 Posts: 3,070 Oklahoma	Originally Posted By rlcarey Define "more insurance than necessary". You mean they have more insurance than the property is worth or more than what you are requiring them to have? Those are two very different things and you should not be involved in that conversation at all unless you want to get the bank sued when the property floods and the they leave insurance proceeds on the table because you advised them to reduce their coverage. You tell them the minimum that the bank requires and you let them deal with their insurance agent for anything else. You are not in the insurance business, you do the banking part. Don't ever put yourself in the role of advising anyone on insurance as all you are doing is putting the bank at risk for absolutely no return. Understood and thanks for putting it this way. Makes a big difference. Thanks Randy. _________________________ Just working here until I get my letter from Hogwarts.
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