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#2137447 - 07/10/17 09:03 PM Flool Letter Notification of Mapping Change
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Is there a standard wording required in a letter to a customer that per mapping changes your residence is now in a flood zone. It appears that our forms directory of flood letters might not be as "clean" as it used to be and we want to be sure our letter is still spot on. Here is what we have. Acceptable or missing something? Any help would be appreciated.

"Due to recent flood map changes, we have been notified that the property securing your loan is now located in flood zone A as designated by FEMA. Attached is a copy of your new Standard Flood Hazard Determination. Federal law requires that you obtain flood insurance within 45 days of this notice.

It is federally mandated that all lenders require flood insurance for loans on any and all buildings located in flood hazard areas. You are able to purchase flood insurance directly from the National Flood Insurance Program or through any insurance agent as long as the policy adheres to FEMA guidelines. The amount of flood insurance coverage required by the bank sufficient to cover the total of your outstanding balance is $30,600.25 but you are encouraged to cover the replacement cost of your structure. We do not require contents coverage although you should consider it.

Purchase of flood insurance is not optional and must be maintained for the term of your loan. Please have your insurance agent forward a current policy to us within 45 days. In the meantime, we will purchase our own temporary flood insurance policy. You will be charged for this coverage until your own policy becomes effective. Our insurance is subject to the insurance limits and all of the terms and conditions of our policy. Our flood insurance policy will only cover your structural dwelling and will not cover your personal property or the contents of the dwelling.

NOTICE: IT IS IN YOUR BEST INTEREST TO PURCHASE YOUR OWN POLICY. THE COST OF OUR INSURANCE MAY BE HIGHER THAN THE COST OF INSURANCE PURCHASED THROUGH YOUR OWN AGENT. IN ADDITION, COVERAGE FOR YOUR PERSONAL PROPERTY CAN ONLY BE PURCHASED THROUGH YOUR AGENT.

Please contact me with any questions at"
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Flood Compliance
#2137481 - 07/11/17 01:23 PM Re: Flool Letter Notification of Mapping Change HRH Okie Banker
Jade'sFire Offline
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Jade'sFire
Joined: Apr 2012
Posts: 369
Yaven IV
I think this looks sufficient. Do you send this with the required "Notice to Borrower of SFHA"?

Our shop sends a similar cover letter along with 2 copies of the required "notice to borrower" and a return envelope. We ask them to sign and return one copy of the required "notice to borrower" for our records. We also send these certified (that way we can reasonably prove delivery if the borrower does not return a signed copy)
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#2137533 - 07/11/17 05:10 PM Re: Flool Letter Notification of Mapping Change HRH Okie Banker
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Yes - we do all of the above. Thank you.
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Just working here until I get my letter from Hogwarts.

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#2139858 - 07/27/17 09:55 PM Re: Flool Letter Notification of Mapping Change HRH Okie Banker
MusicCityCRCM Offline
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Joined: Apr 2015
Posts: 228
I have a question regarding this topic... We currently send out a similar letter when we are notified of a map change. Is there any requirement to send a 'reminder' at 30 days? We currently do this yearly in the case of flood insurance renewals, and the employee in charge of flood monitoring has asked the question if this is a requirement in the case of map revisions.

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#2139859 - 07/27/17 10:06 PM Re: Flool Letter Notification of Mapping Change HRH Okie Banker
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Flood insurance rules require a 45 day letter. Any reminder letters are up to the bank. If you are using the MPPP program for force placement, they have their own rules.
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