Given that the correct answer involves some technical items that the lender may not know about the particular mobile home, I train our lenders using this simple concept:
If there is a flood, will your collateral float away or will it be underwater? If it floats away it is not qualified for flood insurance.
I think this errs on the conservative. If it is tied down in any manner the lender will need to follow up with notices to obtain flood insurance. We may find out from the insurance company salesperson that it is not tied down in a manner that meets the insurance requirements, but at least we didn't let one slip by that should have been insured.
If anyone thinks that I have missed a crucial point in my attempt to make the rules easier to learn please set me straight. The flood reg is still a hot topic and I don't want to send anyone down the wrong path. Thanks.
[This message has been edited by Terry Fitz (edited 10-04-2001).]