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#2038584 - 09/15/15 06:15 PM Homeowners/Flood?
Wonder Why? Offline
Member
Joined: Jul 2009
Posts: 70
I get that homeowner's insurance on p.1 of the LE includes flood when applicable.

Does homeowners include flood insurance also on p. 2 in the "prepaids" and "initial escrow payment at closing" sections on p. 2 as well?

I am thinking yes but am starting to doubt everything I thought I knew about TRID at this point...............

Thank you.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2038799 - 09/16/15 03:01 PM Re: Homeowners/Flood? Wonder Why?
mdog76 Offline
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Joined: Jan 2007
Posts: 645
I'll tag along with these thread and also ask what if a flood determination isn't pulled in the first three days but we find out later its in a flood zone? Does a revised LE have to be sent out showing estimated flood insurance?

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#2038802 - 09/16/15 03:05 PM Re: Homeowners/Flood? Wonder Why?
John Burnett Online
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John Burnett
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Cape Cod
Not if it doesn't affect a closing cost.
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John S. Burnett
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Fighting for Compliance since 1976
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#2038817 - 09/16/15 03:38 PM Re: Homeowners/Flood? Wonder Why?
mdog76 Offline
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Posts: 645
Would you care to expand on that? From what I am seeing, if we learn later that flood insurance will be required, how would a new LE not be needed in order to reflect the new charge? Or can we show the new charge for flood on the closing disclosure since they are "required" to be notified of that at least 10 days before hand anyway?

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#2038824 - 09/16/15 03:45 PM Re: Homeowners/Flood? Wonder Why?
John Burnett Online
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John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
Flood insurance is a form of property insurance. It is not a closing cost subject to a good faith estimate increase cap of 0% or 10%. Therefore, there is no changed circumstance warranting a revised LE. You should be good, since you had no reason to believe flood coverage would be required at the time the LE was issued.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

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#2038832 - 09/16/15 03:58 PM Re: Homeowners/Flood? Wonder Why?
mdog76 Offline
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Posts: 645
Thanks for the help.

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#2039145 - 09/17/15 06:15 PM Re: Homeowners/Flood? Wonder Why?
AnotherDayinParadise Offline
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Joined: Jun 2011
Posts: 103
NE
In regard to the original question, does HOI include flood insurance on page 2 in Section F & G? I think they should be separate, but I am not finding anything that clarifies this in the regulation.

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