Pre-existing flood policy

Answered by:

Question:

We are closing a loan and the borrower already has a flood policy, but our bank is not listed as a loss payee on the policy. Can we close the loan?

Answer:

You can close the loan because the flood insurance is in place. Your safety and soundness examiners may not like this practice but changing the loss payee is an administrative task that can be done very easily after loan closing.
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Learn more about Jerod Moyer and David Dickinson’s webinar
Part II - Flood Insurance Compliance - A Two-Part Companion Webinar Series