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#23134 - 07/09/02 08:51 PM FLOOD INSURANCE

my question is, if you refinance your 1st mortgage after 7 years, do you have to have a new determination. I am confused because the first determination is for life-of-loan , and it is still the same loan. I am curious if you can get around that. OR, we would have to go back on our portfolio and see who has financed after 7 years?
thanks for all the responses!

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Lending Compliance
#23135 - 07/09/02 09:06 PM Re: FLOOD INSURANCE
Andy_Z Offline
10K Club
Joined: Oct 2000
Posts: 27,722
On the Net
OCC-IL-807 ...The NFIA provides that a lender may rely on a previous flood determination whenever a lender increases, extends, or renews a loan if:

l the previous determination was made not more than seven years before the date of the transaction, and

2 the basis of the previous determination has been set forth on the SFHD form,


3 map revisions or updates after the previous determination have resulted in the building or mobile home being located in a SFHA, or

4 the lender contacts the Director of FEMA and determines that recent map revisions or updates affecting the property have occurred since the date of the previous determination.

Yes, get a new determination.
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#23136 - 07/10/02 02:57 PM Re: FLOOD INSURANCE
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Andy is correct. You will need a new SFHDF. I agree that this seems silly and have never understood the logic. If the map is still the same and the SFHDF is accurate, why do I have to complete a form that will look exactly like the one I completed 8 years ago? But, this is FEMA.

Anonymous said "the first determination is for life-of-loan , and it is still the same loan. If you have LofL, it covers that loan. When you refinance, you may have the same property, but you have a new loan. Your determination must be completed again.

You may want to call your determination company. Many will issue a new SFHDF for a reduced price because this is a property that they are already checking for LofL.
David Dickinson

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#23137 - 07/10/02 09:38 PM Re: FLOOD INSURANCE
marcy Offline
100 Club
Joined: Feb 2002
Posts: 120
Yes David, our vendor provides an update to an existing search at a much lower cost. We do this practice for all refinances. It's great! In fact, our prior vendor did it too. It is a bit silly, I agree, but we have to "punch the ticket".

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