We recently had a construction loan mapped-in to a high risk zone (AE). The developer is constructing 9 residential condo units for re-sale. Our Compliance Dept. thinks we should set the minimum amt. of coverage at ($250K x 9 units)....I thought that rule applied only to RCBAP's and this building is merely a shell, no interior completed.

Does anyone know what the minimum amount of coverage should be for this type of loan ?

Please let me know if you need any additional detail. I'm in-unchartered waters here, any guidance you could provide would be appreciated!

Thanks much...

With no condo association yet, if it is all one building it would be eligible for $500,000 as other residential property.