Vendor Guru Q&A - Lending

Latest Lending - Flood Topics

Force Place Insurance in the Correct Flood Zone?

10/11/2020

Here is our problem. Our customer's house is barely in flood zone A but the insurance agent wrote it in zone X. The home equity loan is for $76,100 and the flood coverage is for $140,000. Are we ok or do I need to force place insurance in the correct flood zone?

Life of Loan Flood Certificate Older than 7 Years

08/09/2020

Can a bank rely on a life of loan flood certificate that's older than 7-years when it is refinancing a loan?

Pull New Flood Verification for Renewed Loan?

05/03/2020

When a loan is renewed should a new flood verification be pulled? Does the answer change if the current certification has life of loan monitoring?

Required policy for payment extensions

04/26/2020

Do we need a policy on providing payment extensions to borrowers?

Communicate facts to borrowers

04/12/2020

Customers see on the news that foreclosures and evictions have stopped and borrowers can skip payments. What should we tell them when they ask about this?

Private Flood Insurance Policy for 2 Buildings

04/05/2020

We have a marina loan for $1.2MM with two buildings to house boats. They have a private flood insurance policy for both buildings on one policy instead of one policy per building. Is that possible since its a private policy and not NFIP?

Flood Insurance- Force Place in Interim Period?

02/02/2020

We received notice on Oct. 28 that a borrower was now in flood zone AE. A 45 day notice was sent (force placement would have occurred on Dec. 13). On Dec. 12 we received a copy of a declaration page showing coverage starting effective Jan. 12. I believe we need to force place and then cancel on Jan. 12 at the borrower's expense however I'm getting push back because of a claim of evidence of insurance (again, the policy is not effective until Jan. 12). The declaration page shows payment in full however we do not have an application nor proof of payment. Do we need to force place this interim period?

Allocate Flood Coverage-Multiple Buildings

01/12/2020

How should a bank allocate flood coverage when multiple buildings are on one loan? Here is my example: 1-4 Residences and we need to start the 45-day process for building one. Loan balance: $800,000 Bldg 1: RCV = $235,000; with previous coverage of $250,000 Bldg 2: RCV = $275,000; with current coverage of $250,000 Bldg 3: RCV = $200,000; with current coverage of $250,000 Minimum required would be $685,000, which is bldg 1 = $235,000, bldg 2 = $250,000, bldg 3 = $200,000 If the $685,000 can be allocated any way, what amount would be used for building 1 so as to not be insuring too much?

When/Who is the SCRA Notice sent?

01/12/2020

When and to whom must HUDs SCRA mortgage notice be sent out? We prefer to wait for the 45 day notice we already send.

New Flood Determination When Renewing/Increasing?

12/22/2019

Do you need a new flood determination when you are renewing and increasing the loan amount?

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Congress Extends Flood Insurance Program Temporarily

Congress passed a temporary extension of the National Flood Insurance Program (NFIP), which was set to expire on May 31st.

Policies & Training: What's Required and What's "Required"

Management is always looking for ways to reduce costs and use staff more efficiently.

Best Practice for Saving Emails into Document Management System

10/25/2020

What’s the best way to collect and organize important emails in our document management system?

Transferable Letter of Credit Precautions

10/18/2020

Please explain the precautions which should be used when issuing a transferable letter of credit.

Scanning Before Closing a Commercial Loan

10/18/2020

Why should we consider scanning documents before closing a commercial loan?

Reporting Revenue on Small Business LAR

10/18/2020

When reporting revenue on the small business LAR can you please clarify the following for me: We have a loan program called "Low Doc" in which financials are not used in making the credit decision based on a number of factors, however we do have the revenue information from the customer. In order that these loans are not reported as a code 3 – and not counted in our CRA totals, is it appropriate in using the business revenues that the customer provided?

State's Public Records-Record Retention

10/18/2020

We want to know if there is a vendor or website our bank can utilize to quickly retrieve public records online from various Secretary of State offices, tax cards & tax bills to pay escrowed taxes, retrieve recorded real estate docs i.e. recorded Warranty/Quitclaim Deeds, MTG-DOT and AOR's. The majority of states have their records available online but behind a paywall where you have to pay for each individual page of each document. There's 25+ of us between Lending, Legal, and Compliance that need access at our bank to these docs. In my previous banking career, we utilized a website called NETRONLINE.com with a paid subscription but it appears it is no longer available. Is there a substitute?

Latest Lending - Flood Topics

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