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#1325533 - 01/15/10 06:44 PM flood notice question
Baker Offline
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Joined: Nov 2005
Posts: 792
Washington State
Flood states that we have to provide written notice when the property securing the loan is in a special flood hazard area within a reasonable time to allow the borrower to get coverage prior to closing.

I just found out that our loan officers provide oral notice upon receipt of the determination but have not been following up with the written notice until closing.

If they provide oral notice, follow up immediately with a written notice in the mail/electronically and document in the file when it was sent is it okay that the signed notice is not dated until closing?

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Lending Compliance
#1325560 - 01/15/10 07:01 PM Re: flood notice question Baker
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
You will end up with examination write-ups on that. They want them delivered at least 10 days or as soon as reasonably possible on quick close loans. The only way I would allow signing and dating at closing is if I had file backup showing a return receipt of when I actually really mailed it to them.
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#1325624 - 01/15/10 07:57 PM Re: flood notice question RR Joker
Baker Offline
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Joined: Nov 2005
Posts: 792
Washington State
Thanks for the advice.

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#1325784 - 01/15/10 08:55 PM Re: flood notice question Baker
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,223
Galveston, TX
"The only way I would allow signing and dating at closing is if I had file backup showing a return receipt of when I actually really mailed it to them."

If you have a return receipt, you don't need a signature:

"Lenders must retain a record or evidence of the borrower’s receipt of the notice throughout the period the lender owns the loan. This record can be the borrower’s statement or initials that the notice was received directly, or the U.S. Postal Service return receipt in either hard copy or electronic format."
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