Is this a "same borrower" for using prior certs

According to Flood Q&A #4....it is permissible to use a prior flood determination for multiple loans to the same borrower secured by the same property (if the conditions are met)......my question is about "same borrower"....

We made a loan to ABC LLC in April secured by 90 rental properties...now, 2 months later, we are doing a letter of credit to DEF LLC secured by the same rental properties....these two LLCs are single member LLCs with the same person as the sole member.....

Can we consider these two sole member LLC with the same person as the sole member as the "same borrower" for purposes of using prior flood determinations?

These loans are extended by the same lender, to the same borrower, and are secured by the same improved real estate, and, therefore, these types of transactions are the functional equivalent of an increase of a loan.

You are not meeting these requirements and I doubt your contract with your FHD provider would allow it either.

Thank you Randy....I knew it was a long shot...but thought I'd ask......

If the letter of credit is made to the same LLC that we made the loan to in April, then we can rely on the prior cert....

That is how I understand it,,.is that correct?

Yes - after you verified that none of the existing maps had been updated in the meantime. Also, if your FHD vendor allows it.

If you have any life of loan coverage, that original FHD is usually only good for that original loan.

Thanks, Randy....we do not use life of loan determinations.....do I still need to verify with our FHD vendor?

I had not heard that piece before....

Read your FHD vendor contract. very carefully. Re-use of a FHD for a different borrower or a different loan might void your warranty that they provide, which then makes your FHD worthless.

Thanks for bringing this to my attention, Randy.....we will review with our vendor....