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#2211085 - 04/15/19 04:15 PM Term Less than 1 year - Flood cert?
mdog76 Offline
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Is a note with a term of less than 1 year exempt from having a Flood cert in the file? Its a 90 day note.

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Flood Compliance
#2211086 - 04/15/19 04:20 PM Re: Term Less than 1 year - Flood cert? mdog76
burke116 Offline
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RVA
There are no exemptions, as far as I'm aware, of not needing a flood determination.

There is an exception to the flood insurance coverage requirements for loans with an original principal balance of $5,000 or less AND a repayment term of one year or less.

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#2211093 - 04/15/19 04:40 PM Re: Term Less than 1 year - Flood cert? mdog76
mdog76 Offline
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That's what I was trying to remember but its for the actual coverage and not the determination.

Thanks for the help.

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#2211095 - 04/15/19 04:52 PM Re: Term Less than 1 year - Flood cert? mdog76
Skittles Online
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TN
Correct - if the original loan amount is $5,000 or less and the original term is one year or less then flood insurance would not be required; however obtaining the determination would still be a requirement.
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#2211437 - 04/17/19 06:56 PM Re: Term Less than 1 year - Flood cert? Skittles
Carolina Blue Offline
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Lost in a regulatory fog
I would also point out for anyone else reading that you also need to notify the borrower if the determination finds the property in a flood zone even if insurance is not required.

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#2211488 - 04/18/19 11:55 AM Re: Term Less than 1 year - Flood cert? mdog76
Skittles Online
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TN
Good point, Carolina.
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