From what I understand, a bank can use a previous flood zone determination if the loan is increased or extended or renewed. However, the flood zone determination cannot be more than seven years old.
If the bank MAKES a loan, a new flood zone determination must be obtained unless the bank already holds the security, i.e., the customer now wants a second mortgage on their home and we already have the first, same lender/same property. In this case, the old flood zone determination can be used.
I have two questions:
1. Does the exception to obtaining a new determination apply to inside refinances as well as second mortgages? It's still same lender/same property.
2. Does the seven year rule apply to same lender/same property loans? Seems to me that if there is life of loan coverage, then a new determination wouldn't be necessary even if it's more than seven years old.