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#2114776 - 01/19/17 08:03 PM Note Amended-Flood Trigger
Bec Offline
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Bec
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The Great White North
If we amend a payment of a note to give a little relief to the borrower, is that a trigger for flood?
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Flood Compliance
#2114784 - 01/19/17 08:47 PM Re: Note Amended-Flood Trigger Bec
GuitarDude Offline
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If the amendment extends the maturity, it would hit the "E" in MIRE and trigger flood.
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#2114791 - 01/19/17 08:58 PM Re: Note Amended-Flood Trigger Bec
Bec Offline
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Ok, say that is the case, the maturity date is extended. Notice to Borrower for sure. If the flood insurance in place was currently force placed, would we have to require them to get their own insurance prior to performing this flood triggering action?
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#2114811 - 01/19/17 10:09 PM Re: Note Amended-Flood Trigger Bec
Bec Offline
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The Great White North
bump
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#2114823 - 01/20/17 12:00 AM Re: Note Amended-Flood Trigger Bec
GuitarDude Offline
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I think you could rely on the existing insurance even though it was force-placed. The one thing you cannot do is force-place in order to book or modify a loan (which doesn't seem to be an issue here, but generally speaking).
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#2114855 - 01/20/17 02:20 PM Re: Note Amended-Flood Trigger Bec
Bec Offline
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Bec
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The Great White North
Thank you for your feedback.
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#2114965 - 01/20/17 05:36 PM Re: Note Amended-Flood Trigger Bec
David Dickinson Offline
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While I agree that having borrower purchased insurance (vs. force placed) is the prudent thing to do, no where in the regs/law does it say you can't make a loan when you have force placed insurance. This was stated during the Oct 2014 Outlook Webinar.

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