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Flood Policy Required-Abundance of Caution Lien?

Answered by: 
Randy Carey

Question: 
We have an existing unsecured loan that we are going to take "abundance of caution" liens on 2 improved properties (which also secure other debt with us and we are in the priority lien positions). One house is located in a flood zone. There is NO new money involved. Are we required to obtain a flood policy?
Answer: 

Well, you should already have a flood policy if it secures an existing loan. You will have to add the balance of the existing loan and the currently unsecured loan together to determine if the current coverage is sufficient.

First published on BankersOnline.com 6/18/12

First published on 06/18/2012

Filed under: 
Compliance
Filed under compliance as: 
Flood
IT
Lien

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