We are still (so far ) doing five year balloon home equity loans and lines. We've always done basic flood determinations at the time of origination and renewal, but are going to be doing life of loan.

I'm a little confused how five year renewals fit in with the 7 year validity of a flood determination form. If we have life of loan, and then we don't do another flood search at the time of the renewal in year 5, what happens after the 7 year period of the initial flood determination? Are we out of compliance for the last three years of the loan period? Or do we just have to do a new determination at the next renewal?


Does 'life of loan' coverage stop at the time of renewal, as if it were a new loan?

Sorry for the basic questions...thanks!

If the 7 years hits in the middle of the loan you're fine. If you make a new loan or increase, renew or extend the current one you will need a new flood determination at that time.

Does that make sense?

I think so...thanks!

That will be determined by the contract with your vendor. Some vendors track by loan # others track by property location. You will have to check with them to see if you have to get a new determination or re-certification with each renewal.