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.
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).
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?