Should lenders be updating the property value of a building when force placing flood insurance?
As a general rule, the principal balance would have "decreased" and the value of a property would have "increased" so we would not be short of flood insurance from what we obtained at origination, but, should lenders be obtaining an updated replacement cost or insurable value at time of force placing and is this an common practice in the industry?
Typically, a lender would not order an updated appraisal unless making a new loan or renewing and extending an existing loan, so, just want to confirm what the lender obligation is at time of force placing an "existing" loan?