We have a loan in the pipeline and received notice that the building is in a special flood zone area. The building is a multiple unit apartment building consisting of a basement and 4 floors. There was an elevation certificate done which showed that only the basement is in the flood area. There is nothing in the basement, and no contents stored there. I realize that in determining the minimum required flood insurance we have to take into consideration: 1-Replacement cost of the building / appraised value; 2- MAX limits of coverage: $500,000.00 limit for structure / $500,000 for contents (since this is a multiple unit apartment building), and the 3- loan amount. Our question is, once we assign a value, and because the flood area is only in the basement, as determined by the elevation certificate, since the building is 4 floors and a basement, can use 1/5 of the value as a factor in determining minimum required flood insurance?
Our financial institution has always issued conditional approvals and views that as our final loan approval for determining if an applicant has withdrawn, etc. Should we have revisited this process with the change in HMDA in 2018?
We have a commercial appraisal on a property for one borrower. The borrower could not reach an agreement with the seller so the deal fell through. We have another customer interested in the property. Can we use the original appraisal for the new customer's request?
A customer signed her application using a hyphenated name. Her property is in solely her maiden name, but it is vested as "husband and wife". Do I still need to put a/k/a on documents?
Should a loan officer be the one signing loan docs or can it be anyone that is an officer of the bank do this?