We are making a mortgage loan on 3 parcels of property. All three parcels have mobile homes located on each parcel. Because the age of the M.H. we are only taking one of the M.H. as collateral. Is flood determination required on all three parcels.

No.

Although you may not be adding any lending value to the other two, you are probably taking them as collateral. Most Deeds of Trusts and Mortgages incluce all structures, attachments, etc. Unless you specifically exclude everything but dirt, those are part of your collateral and need determinations and coverage.

Al

That will depend whether the MHs are part of the real property or are "titled" property. If they are taking no security interest in the other 2 MHs then only a determination for the property with the one MH they are taking as security requires a determination. As the question was presented I assumed they knew the difference.

You do have to read your mortgages carefully. A lot of lenders think they aren't taking a lien on the mobile home but just the land underneath when really their mortgage is taking a security interest in the mobile home, if it is permanently attached, which a lot of mobile homes are.

We train our employees to floods for each one unless you are certain that your mortgage excludes these attachments. Our mortgage doesn't exclude these and we feel like inserting add'l verbiage would make it look like we are simply trying to avoid flood determinations or flood insurance, when applicable.

I don't disagree with the pitfall of the mortgage encompassing the improvements on the real property, but this is where you need to be familiar with your state laws concerning MHs. I can set a MH on a permanent foundation, as defined by my state law, and that MH is still not a part of the real estate until the title has been retired. When we deal with MHs we require a copy of the tax statements to see if the MH is being taxed as real or personal property. If the MH is not part of the real property under state law then your mortgage does not include that MH.