12/07/2009
There was a question: <a href="http://www.bankersonline.com/lending/guru2009/gurus_ldng090709d.html">Timeframe to Provide Flood Insurance</a>, regarding a loan that fell into a flood zone as a result of a mapping change. The guru responded, "You need to send the borrower the Notice of Special Flood Hazard..." I could not find where this was a requirement in FEMA, any ideas? It does not fall under the Make, Renew, Extend or Increase criteria for a flood notice.
11/23/2009
Is an "All Risk" policy one that covers hazard and flood acceptable for flood insurance?
08/24/2009
In researching a blanket insurance policy, it says it covers everything under the property. Does that include Flood Insurance or is a separate rider required?
05/11/2009
We requested a flood certification from a vendor which came back saying they needed time to research. In the meantime, we submitted the request to another vendor. The initial request came back with the property in a flood zone whereas the second request came back not in a flood zone. We have a flood certification dated June 2008 from the original vendor for the same property showing that the property is not in a flood zone. We have life of loan monitoring and have not received any updated information from them. How should we proceed?
01/19/2009
Can a lender substitute a DIC insurance policy for a NFIP policy on commercial loans?
11/24/2008
We have a borrower that has flood insurance in place. While reconciling the flood determination to the insurance policy, I noted that the firm zones did not match. I brought this to the attention of the insurer who submitted the information to FEMA. I was copied on a letter from the insurer to the borrower requesting an additional premium as the firm zone was changing. Do we need to issue a 45 day letter because we are aware that an additional premium is owed and if so, what amount would we have to force place?
10/13/2008
My question pertains to flood and it's personal. I recently applied for a home equity loan with a credit union. When the lender ran the flood determination, it stated that my home is in a flood zone. It's not. I live on a street that was divided by a new road several years ago (before my home was even built). The street name on both sides of this new highway is the same. On the side opposite from me, the street slopes down sharply toward the river and is clearly in a flood zone. I have looked at the flood maps on FEMA's website and have even sought the opinion of my county's flood plain coordinator. He agrees with me that my home is clearly not in the flood zone, but because my street address is used in the flood determination and because the flood map does not even label the street on my side of the new road, the flood certification states that my home is in a flood zone. What can I do to resolve this situation?
09/29/2008
If a bank has a customer that was located and insured in flood zone AE, but due to a recent flood map change is now in flood zone VE, does the grandfathering rule apply? If so, is the requirement that the insurance premium stay at the AE zone rate, but the property still needs to be insured for zone VE or will FEMA pay for a VE loss even though it has been insured as an AE zone?
06/23/2008
We recently conducted an audit of our flood records and found a file that has a standard flood report noting the property is in a flood area. The loan is a land loan, but has an old literally falling down house on it. The officer of record went to view the property, took pictures and wrote a memo stating that the house was above the elevation and not in a flood area. Could we send the required notice, consult an insurance agent and let them give us a letter that they would not insure it to place in the file? Would that work?
09/10/2007
If we order a flood certification and the zone differs from the zone determined by the insurance company, what do you do?