We are preparing a 3 month deferral of payments ONLY not extending maturity. The property is in a special flood zone. Is it a requirement to pull a new flood determination?
A local swim club has applied for a $25,000 loan to do improvements. The flood search shows that the security property (which is one parcel) is in a flood zone. Per the insurance company that insures the swim club, the pump house is not in a flood zone. Using the flood maps, the township engineer says that he will issue an elevation certificate and a letter certifying that the clubhouse on the security property is also not in the flood zone. The pool itself cannot be covered by a flood policy. If our bank gets an elevation certificate and a letter from the township engineer, is this sufficient to warrant our bank putting this loan on without flood insurance?
Should Lenders receive a declaration page or receipt of coverage from their customer's insurance agent to certify Flood Insurance has been purchased prior to closing? And is this a requirement that has to be received before a home loan can close?
Now that it is acceptable to use a private flood policy, is it acceptable to use a builders risk policy with flood coverage for a construction loan?
We recently had a change in staff and are cleaning up lending procedures. In doing so we noticed that our flood procedures do not include insurable value. We only calculate flood insurance on the Maximum allowed or the loan amount. Basically we could be requiring the customer to obtain more insurance than what is needed. I would argue that we are in compliance; however, what other risks do you see in not using the insurable value. We are not sure why are former employee never used insurable value.
Does the flood notice have to be signed at renewal if the loan is not in a flood zone? Everything I have read about giving the notice seems to read "if located in an area that's in a flood zone" so it appears conditional.
On a commercial loan, can the flood premium be financed?
We have a flood certificate indicating a flood zone "SHX*". What is the designation? Is flood insurance required, or property is deemed not in a flood zone?
In a recent webinar with the FDIC it was noted that when there are multiple buildings on a property, the maximum allowable amount would need to be pro-rated so that each building had coverage. The total amount of insurance could not be more than the maximum allowed ($250k/$500k). In a past post on BOL I read the maximum amount could be placed on each building. Can you clarify what the requirements are?
Flood Insurance-I've been reviewing a private flood insurance policy and it doesn't have the 45 Days' Notice of Cancellation to Insured and
Mortgagee. Borrower decided to apply for one issued under NFIP (ASI) and it doesn't have the 45 Days' Notice of Cancellation either. I thought if
issued under NFIP it had to?