Does the flood insurance have to be paid in full before closing the loan or can the policy be issued and customer make monthly premiums to the insurance company? This is a new policy.


Thanks

You are required to have a policy in force before closing the loan. There's an FAQ that indicates you should have proof of payment. There's nothing that says they have to pay a full year. However, this is going to be a problem to monitor. You'll have to ensure that the borrower doesn't ever miss a payment (12 times per year instead of 1 time per year).

If you were closing loan on June 8 and customer pays on June 8 could they get the policy in force that quick?

Thanks

I didn't think a NFIP policy could be paid in monthly installments. Has something changed that I missed or is this a private policy?

Private policy, but I think it would be best paid all at one time. I am also concerned about the time frame.

Thanks,

Then you will have to check with the insurance company to find out what the effective date of the policy will be if the premium is paid on 6/8.

Have receipt and application where applied and paid for flood insurance, but does not show us as lien holder. The insurance company states this will show on the actual policy? Can I close loan with these documents?

Never mind received information. Flood and Hazard thru different companies, but same insurance company example State Farm. So can you list State Farm on CD?

Thanks