Answer:
Sounds like you have a vendor that is trying to sell you unneeded flood hazard determinations. From the Interagency Questions and Answers Regarding Flood Insurance - July 23, 1997:
4. Are draws against approved lines of credit a “triggering event” requiring a flood determination under the Regulation or is it only the original application for the line of credit that triggers a determination?
Answer: Assuming that the line of credit is secured by a building and is thereby a “designated loan,” a determination is required when application is made for the loan. Draws against an approved line would not require further determinations. However, a request for an increase in the line of approved credit is a triggering event and might require a new determination, depending upon whether a previous determination was done.
First published on BankersOnline.com 5/28/07
print
share