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#2228096 - 12/31/19 02:43 PM flood policy issue
parr04 Offline
Gold Star
Joined: Aug 2004
Posts: 379
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?

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Flood Compliance
#2228099 - 12/31/19 03:29 PM Re: flood policy issue parr04
rlcarey Online
10K Club
Joined: Jul 2001
Posts: 78,631
Galveston, TX
Get a copy of the change endorsement from the agent. If he is working on this as they say, they should be able to easily provide you a copy.
The opinions expressed here should not be construed to be those of my employer:

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