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#721939 - 04/25/07 07:17 PM Flood Hazard Notices
Cattitude Offline
New Poster
Joined: Apr 2007
Posts: 4
Georgia
If we are renewing a loan where the property is in a special flood zone and we have a notice to customer of this in file, are we required to give them a new notice at or prior to renewal when a new flood determination was not ordered?
Thanks!

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#722159 - 04/26/07 02:49 AM Re: Flood Hazard Notices Cattitude
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
USA
A loan renewal is a triggering event under the flood insurance rules and would require a new notice. Below is a link to a 2001 FDIC FIL that is a summary of the rules. Look for Notices to Borrowers (12 C.F.R. 339.9)

http://www.fdic.gov/news/news/financial/2001/fil0181a.html

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#722218 - 04/26/07 12:47 PM Re: Flood Hazard Notices Jan94
waldensouth Offline
Power Poster
waldensouth
Joined: Nov 2001
Posts: 7,981
FINALLY ABOVE the gnat line
The FDIC will write you up for this even though the original notice to the borrower AND the current flood insurance policy is in the file. There is no common sense in the flood regulation.
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"Once you learn to read, you will be forever free."

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#722226 - 04/26/07 12:53 PM Re: Flood Hazard Notices waldensouth
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
Boy did you say a mouthful waldensouth! Is there much common sense tho in any reg?!?!?
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