Flood Determination & Loan Renewals

Answered by:

Question:

If you have a flood determination that is 5 yrs. old and renew the loan (on the same property, no new money), a new determination is done 3 days after the renewal are you still covered by the earlier determination?

Answer:

Answer by Andy Zavoina:
The earlier determination would still be valid if it was recorded on the SFHDF within the previous seven years and there were no map revisions or updates affecting the security property since the original determination was made. This would generally be easily demonstrated if the prior determination was for lifeoftheloan coverage.

Answer:

Answer by Lucy Griffin:
The determination is good for 7 years unless the flood maps have been changed. When you renew the loan, you should make sure that any lifeofloan tracking will continue on the new loan. Otherwise, you will have to start over. However, as Andy points out, you are still ok for a few days or more.

First published on BankersOnline.com 11/5/01