Answer:
Your vendors are often monitoring and notifying hundreds of banks about map changes so it seems reasonable to me that they may take 30 to sometimes 60 days to notify you. This is spelled out in your contract with them. When you receive the notice; however, my opinion is that you should send the notice out as soon as you get it. Once you get the notice you now have knowledge of inadequate insurance and should notify the borrower right away. If a flood occurs while you are waiting to send the notice, I think you will have a hard time explaining why it took a week to do so to a regulator or judge.
Learn more about David and Jerod’s webinar Part I: Flood Insurance: Requirements and Best Practices .
print
share