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#2036620 - 09/01/15 03:05 PM Flood Ins Required on loans <$5K
Joanna Offline
100 Club
Joined: Sep 2013
Posts: 102
Are we required to have flood insurance on a loan if < $5K?

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Flood Compliance
#2036648 - 09/01/15 04:32 PM Re: Flood Ins Required on loans <$5K Joanna
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
It depends. There is an exemption from the purchase of flood insurance where the original outstanding principal balance was $5,000.00 or less and with a repayment term of one year or less. [ยง339.4(b)] NOTE: Only the insurance purchase is exempt. The flood determination and the notice are still required.
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David Dickinson
http://www.bankerscompliance.com

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#2036702 - 09/01/15 07:03 PM Re: Flood Ins Required on loans <$5K Joanna
TMatt87 Offline
Diamond Poster
TMatt87
Joined: May 2011
Posts: 1,935
Idaho
We actually were cited for this exact issue on our last exam. We had a 4k loan with a term of 2 years and didn't get flood insurance. Luckily it was an isolated incidence so we didn't have to pay a CMP.
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All opinions are my own, not my employer's

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