The following has been presented to me and I'm not quite sure how to answer: I have a Lending Officer who is working on a ground lease loan request that will consist of 3 separate, cross collateralized loans, for an aggregate loan amount of $2,762,804.00. Our collateral will be the land plus the assignment of all ground leases and rents. That said, will I still need to pull flood on this deal?

My thought is 'yes' on pulling flood determination because the lending assistant states they will be taking the land but, if in a SFHA, do we have to have flood insurance on the ground lease building(s)?

Typically a transaction like this would not include any collateral interest in any improvements on the land, as the leasehold improvements would actually be owned by someone else. Have your legal counsel look at the transaction to confirm.