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#2174060 - 04/18/18 12:22 PM Prior Lien balance at renewal of flood policy
Cloud9 Offline
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Registered: 07/08/08
Posts: 168
Are we required to verify the current outstanding balance on a first lien when we have the second and it is time to renew the policy? We've just been using the original outstanding balance indicated on the original loan application at each renewal to determine the required coverage amount. Thanks.

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Flood Compliance
#2174234 - 04/19/18 10:17 AM Re: Prior Lien balance at renewal of flood policy [Re: Cloud9]
Cloud9 Offline
100 Club

Registered: 07/08/08
Posts: 168
Please - Someone?

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#2174251 - 04/19/18 10:51 AM Re: Prior Lien balance at renewal of flood policy [Re: Cloud9]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 67324
Loc: Galveston, TX
Most banks do not re-check first lien balances at the time of renewal. Unless the customer is renewing for less than the original policy amount, not sure why it would matter.
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#2174253 - 04/19/18 10:56 AM Re: Prior Lien balance at renewal of flood policy [Re: Cloud9]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 45023
Loc: Bloomington, IN
As long as the insurance coverage has not decreased you should be fine. If the coverage decreased then you would need to verify the first mortgage's current balance to make sure you are still adequately insured.

We've just been using the original outstanding balance indicated on the original loan application

I am assuming this "application" balance was verified and not taken as stated by the applicant.
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The opinions expressed are mine and they are not to be taken as legal advice.

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