Property now in Flood Zone

Posted By: BankerChic24

Property now in Flood Zone - 03/30/12 03:30 PM

We have been notified that a property we have a mortgage on that originally was not in a flood zone is now in a flood zone due to re-mapping. Do we have to notify the customer with a letter and the flood zone disclosure notice on EACH loan tied to this property? On one of the loans, this property was only taken as an abundance of caution.
Posted By: ahou

Re: Property now in Flood Zone - 03/30/12 03:40 PM

For each building that is now in a flood zone, you have to obtain flood ins - so yes, send a 45 day customer letter. For flood and most other regs, the term "abundance of caution" is inapplicable.