2 loans being renewed new note #

we have 2 loans which are being renewed, consolidated into 1 loan, both secured by the same property. We did a flood determination one year ago, not in a flood zone. We had LOL coverage. Is it best practice to request another flood determination because we are renewing with a new NOTE number? The borrower remains the same.

LOL coverage will not tell you whether or not the map used on the original determination is still the most current map. Get a new one, or recertification from your vendor or verify that the map has not been updated.

What is the purpose behind LOL? I thought it was to let you know if the map changed?

LOL is a service. It is not a regulatory issue. For instance, you must get a new SFHDF if the old one had a map change or is > 7 years old. You can't say "we have LOL so we don't need to do that.

LOL is supposed to let you know if a map changes.

Back to your original question. Same property, same lender. If the "old" SFHDF meets the 3 conditions (no map change, on a SFHDF and < 7 years old), you can rely upon it for the new note. A new note # has nothing to do with it.

Its primary purpose is to let you know of a status change in the property.


Generally the LOL monitoring will only notify you if the status of the property changes, i.e. went from out to in or in to out of a SFHA. If the map changes and there is no status change to the property most likely you won't be contacted under the contract terms.

Our city and county just went through a re-mapping with the effective date of the new map being 12/17/10. We only received notifications for status changes.


PS. This link will give you the effective date of the most recent map.

http://www.fema.gov/fema/csb.shtm

Thank you to both of you. You have been very helpful.