Does a mobile home (not owned by the customer) require flood insurance or notification?

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Question:

If we finance the purchase of land for a customer and there is a mobile home on the land not owned buy the customer is Flood Insurance or Notice required? A relative of the customer lives in the mobile home but pays no rent to live on the land.

Answer:

You would have no insurable collateral. The flood certification in this case is required by any lienholder on the mobile home. They would have what FEMA refers to as a "designated loan", not you.

First published on BankersOnline.com 2/17/03