We have a lender that is trying to close a very large loan.
Collateral for the loan is approx.. 2,000 acres of farm land and of course most of it is in a flood zone.
I have only identified one structure, a barn, located in the flood zone.
Since this is a refinance the borrower already has flood coverage on the barn with the flood policy showing the current lender as mortgagee.
As I reviewed the current flood policy I noticed the policy indicates the barn to be located in the wrong county.
The insurance company agrees and is trying to get this corrected but with the holidays it is taking longer than normal.
As per current flood regulations can we close this loan before the correct legal description is added to the policy and the mortgagee is changed without a violation?