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#529328 - 04/10/06 02:59 PM
Re: Flood Insurance for a Mobile Home
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10K Club
Joined: Aug 2005
Posts: 13,603
Somewhere vanilla
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Quote:
A mobile home ha to be on a permanent foundation in order to get flood insurance. Correct?
No. See page 26 of the mandatory purchase guidelines. In short: "The loan need not include security in the real estate underlying the mobile home... A chattel mortgage on a mobile home will trigger the mandatory purchase requirements."
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#529329 - 04/10/06 03:55 PM
Re: Flood Insurance for a Mobile Home
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Platinum Poster
Joined: Oct 2001
Posts: 707
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#529331 - 04/11/06 01:11 AM
Re: Flood Insurance for a Mobile Home
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10K Club
Joined: Jul 2001
Posts: 85,235
Galveston, TX
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I think the question may have been more targeted at if a mobile home is not permanently anchored - can it be insured. The answer to that question is no. The underlying property is never an issue whether it is collateral or not. Many mobile homes reside in mobile home parks and the underlying property is never collateral - however, unless the home is anchored (permanent foundation or tie-downs) the home is uninsurable.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#529333 - 04/11/06 02:28 AM
Re: Flood Insurance for a Mobile Home
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Joined: Jul 2001
Posts: 85,235
Galveston, TX
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A mobile home in a SFHA is required to be insured. However, if it is not anchored, it is not insurable. It has nothing to do with whether or not the underlying property is part of the collateral. I think we are most likely saying the same thing. The original question was - did the mobile home have to be on a permanent foundation. That answer is no - it could be "anchored" in another manner. Did you change your orignal answer, because the current answer you have there now was not what I thought I read earlier in the day???? 
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#529335 - 04/11/06 04:23 PM
Re: Flood Insurance for a Mobile Home
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Power Poster
Joined: Oct 2000
Posts: 5,992
Soaring over Georgia
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To sum up:
Mobile homes require a flood determination regardless of whether land will be taken as collateral. If the location of the mobile home is not yet known, the flood determination must be made once the location of where it will be is known.
If the location is in a SFHA, flood insurance is required before closing the loan. In order to get flood insurance, the mobile home will have to be on a permanent foundation or otherwise anchored in order to be insurable. If the borrower is unwilling or unable to anchor the mobile home, then it will not be insurable, and therefore the loan cannot be made.
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Jim Bedsole, CRCM, CBA, CFSA, CAFP
My posts - my opinions
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#529338 - 04/12/06 05:23 PM
Re: Flood Insurance for a Mobile Home
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10K Club
Joined: Nov 2000
Posts: 18,765
Central City, NE
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Quote:
To sum up:
Mobile homes require a flood determination regardless of whether land will be taken as collateral. If the location of the mobile home is not yet known, the flood determination must be made once the location of where it will be is known.
If the location is in a SFHA, flood insurance is required before closing the loan. In order to get flood insurance, the mobile home will have to be on a permanent foundation or otherwise anchored in order to be insurable. If the borrower is unwilling or unable to anchor the mobile home, then it will not be insurable, and therefore the loan cannot be made.
Jim:
That's the best summary of the Flood-Mobile Home rules I've ever seen. Well said. [that must be why you have all of those letters after your name] 
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#529340 - 05/04/06 10:26 PM
Re: Flood Insurance for a Mobile Home
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Member
Joined: Jan 2005
Posts: 77
Reading on the riverbank
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Can I throw in my $ .02? Our new compliance officer has dictated that even through the mobile is not on a permanent foundation, if it is hooked to electricity or water, it must be insured. I contend that if they can't get insurance (everything I researched indicated it had to be on a permanent foundation) then we can't require the insurance as a condition of the loan. You can't make the borrower get something that isn't available and I think there could be legal repercussions if the loan is denied because of requiring insurance that can't be had! I'm really confused!
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#529341 - 05/04/06 10:29 PM
Re: Flood Insurance for a Mobile Home
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Power Poster
Joined: Dec 2002
Posts: 4,623
SC
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Why not make a permanent foundation a condition of all of your mobile home loans?
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#529342 - 05/04/06 10:34 PM
Re: Flood Insurance for a Mobile Home
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10K Club
Joined: Jul 2001
Posts: 85,235
Galveston, TX
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Well - your compliance officer is wrong about them being able to get insurance because of a mobile home being hooked to electricity and water. However, your bank could have a policy of not lending on uninsurable collateral located in a SFHA. That is a safety and soundness call however, and not a compliance call. It sounds like (1) your compliance office is confused and (2) they are overstepping their authority.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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