05/15/2022
Is flood insurance required on property taken as an abundance of caution?
05/15/2022
We have been having a terrible time getting our borrower to provide evidence of flood insurance. We are all getting frustrated. Today she finally brought in a binder showing an adequate amount of coverage. Can we close tomorrow?
05/08/2022
We told our commercial applicant that his building is in a flood zone so he needs to purchase flood insurance. He hired a registered professional engineer and brought in an elevation certificate showing the lowest floor is above the Base Flood Elevation. Can we accept it? He is threatening to take his loan elsewhere if we don’t.
05/08/2022
In reviewing the FEMA manual and Flood Act requirements, I don't see any carve-outs for old "placeholder dwellings" (dilapidated structures).
Our policy has been that if they have two walls and a roof and they are in a flood zone requiring insurance, it must be purchased. We are running into insurance agents who are saying that homes have a lifespan of 40-60 years so if the home is 60 years old, that the percent of life left is 0 and as such, there is no Actual Cash Value, even when a picture of the dwelling shows it is still standing. Are you aware of any basis for accepting an agent's statement that there is $0 ACV based on the age of the home and lack of upgrades to avoid requiring flood insurance?
03/20/2022
If the bank takes a blanket commercial UCC as collateral does that trigger the requirement to obtain proof of Contents Coverage if the property is in a flood zone, or would the UCC have to be specific to Equipment, Furniture & Fixtures as well as the loan approval?
Would proof of flood/contents coverage be necessary on a blanket commercial UCC taken as collateral?
03/13/2022
Is a notice to borrower required when the property is not in special flood zone with HELOC docs?
02/06/2022
Does a bank need to be added to a flood insurance policy as loss payee if they are making a 3rd lien mortgage loan for home improvement? In this case the 1st & 2nd lien loans have larger balances than the required minimum of ($250,000) so our bank may not see payment since balances for 1st & 2nd liens are larger than flood insurance value. Does the FDPA require the bank to add themselves as loss payee even though they would not see payment in the event of a claim?
01/30/2022
Is a person’s written consent required for us to access their credit bureau file?
01/09/2022
What has happened to flood penalties in 2021?
01/01/2022
Is a person’s written consent required for us to access their credit bureau file?
