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#467501 - 12/08/05 03:13 PM Flood - Should be Simple, But It's Not
upstateNY Platinum Poster Joined: Apr 2003 Posts: 933 New York State	We are experiencing more and more frequent situations where the borrower renews his/her flood insurance policy for an amount that is inadequate under the NFIP rules. We fully comply with the notification requirements, but are faced with a dilemma when the customer refuses to increase the coverage. FEMA will not write a second policy on the property, so we are not able to forceplace for the additional amount. We can't cancel the customer's policy and forceplace for the full amount. If push comes to shove, we may have to proceed to forclosure action. However, the problem remains...the property is under-insured. Any suggestions?
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Lending Compliance

#467502 - 12/08/05 04:26 PM Re: Flood - Should be Simple, But It's Not
GreatBlue Diamond Poster Joined: Feb 2003 Posts: 2,362 Colorado	How about private insurance to cover the deficit? _________________________ Opinions are mine and not necessarily my employer's.
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#467503 - 12/08/05 04:40 PM Re: Flood - Should be Simple, But It's Not
Dan Persfull 10K Club Joined: Aug 2002 Posts: 47,530 Bloomington, IN	Quote: How about private insurance to cover the deficit? That's what we do. And when the borrower calls in to complain about the high premium we give them two choices, get the proper coverage on their own or pay off the loan. They normally opt to get insurance on their own. _________________________ The opinions expressed are mine and they are not to be taken as legal advice.
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#467504 - 12/08/05 07:47 PM Re: Flood - Should be Simple, But It's Not
Sound Tactic Power Poster Joined: Feb 2005 Posts: 5,349	that is a good idea, I like that _________________________ If your tagline references disclaimers regarding the nature of political posts, then you should just hit notify.
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#467505 - 12/08/05 08:22 PM Re: Flood - Should be Simple, But It's Not
upstateNY Platinum Poster Joined: Apr 2003 Posts: 933 New York State	Quote: How about private insurance to cover the deficit? The implication then is that we can obtain coverage for the deficit from a private company (not FEMA)? I was not aware of that.
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#467506 - 12/08/05 08:27 PM Re: Flood - Should be Simple, But It's Not
The Incredible ComplyGuy Power Poster Joined: Sep 2005 Posts: 7,350 The he11 of suburbia	You can also get a blanket policy to cover the bank's risk.
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#467507 - 12/08/05 08:36 PM Re: Flood - Should be Simple, But It's Not
upstateNY Platinum Poster Joined: Apr 2003 Posts: 933 New York State	Quote: You can also get a blanket policy to cover the bank's risk. Don't think this would work for flood insurance where we need to have coverage specific to the particular piece of property.
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