02/09/2025
If an extension is built into a Security Agreement for a construction loan allowing a 6-month extension, would this constitute a MIRE event for a flood determination? The property is in a flood zone and the borrower does have flood insurance.
12/15/2024
We have a question on the 45 day letter/forceplacement time frames. Can you give an example of the timing when a policy expires on 12:01 am on April 1st. The 45 day letter would go out on the 1st, when would you actually forceplace; the 46th day after the date of your letter?
Please also clarify the FEMA lapses due to funding. Were you saying that if we have a FEMA policy in place and the government lapses the program, we are required to have them obtain a private policy or we need to start our 45 day forceplace process until the government reinstates the program?
12/08/2024
We are looking into changing our procedures regarding force placed insurance, on both hazard and flood. Currently, we have been increasing the principal balance of the loan and including the premium in our coverage amount. We have not however; on flood, been pulling another flood determination or providing a new flood notice. We thought since they were “life of loan”, we were ok. We are wanting to change the procedure, to adding the force placed insurance as a fee and renewing/charging at time of balloon.
My question is…are we in compliance if we only cover the principal balance and not include the payoff (which will contain our premium)?
10/13/2024
If a property is in a flood zone but is raw land with only a boat dock, is flood insurance required?
04/28/2024
On our commercial loan agreements, we are using fixtures as collateral in a blanket security statement. Does this mean we need contents coverage on the flood policy? I read somewhere that Fixtures = Contents.
04/21/2024
Is a person’s written consent required for us to access their credit bureau file?
03/31/2024
Is redlining real? It seems to be an antiquated type of violation.
03/24/2024
We are making a construction loan to a business to construct their new corporate office. Because the building is not yet constructed, do we need to do a flood determination?
03/17/2024
Our loan amount is $1,000,000. According to the hazard policy, the replacement cost value of the building is $1,500,000. We only have $500,000 coverage on the building and our internal auditor has indicated we need more coverage. Is this true?
03/10/2024
Is flood insurance on the contents of a property required if the property is located in a SFHA?