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#2292594 - 01/22/24 12:58 PM No longer in SFHA How to Stop Collecting Escrow
Likes to Comply Offline
Diamond Poster
Joined: Nov 2008
Posts: 1,119
In the mountains
After paying out the flood insurance premium out of escrow, we received notice that the property is no longer in a SFHA and that the premium was refunded to the borrower. Must we do a short year statement in order to stop collecting for flood insurance or is there something else we can do to just stop collecting the portion for flood insurance?
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#2292595 - 01/22/24 01:15 PM Re: No longer in SFHA How to Stop Collecting Escrow Likes to Comply
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,605
Galveston, TX
Did the borrower totally cancel their insurance or was the premium just reduced? I assume when you say you received notice, it was from your FHD provider?
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#2292596 - 01/22/24 01:30 PM Re: No longer in SFHA How to Stop Collecting Escrow Likes to Comply
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Diamond Poster
Joined: Nov 2008
Posts: 1,119
In the mountains
I do not have all the details, but will find out. The main thing is that the insurance was cancelled by the borrower. How do we stop collecting the premium for escrow. Must we do a short year statement or is there a way in the system to just reduce the monthly payment to stop collecting the portion of the flood premium and at the next annual escrow analysis remove the flood premium altogether and just do the analysis for hazard and taxes?
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#2292598 - 01/22/24 01:46 PM Re: No longer in SFHA How to Stop Collecting Escrow Likes to Comply
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,605
Galveston, TX
You have the option of either doing a short year statement or waiting until the normal analysis period. You are under no obligation to do anything right now.
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