Timing for Flood Force Placement

The regulations tell you what you must do if you learn that flood coverage has lapsed. They don't control how you deal with your customer before maturity. So you certainly may correspond with your customer before the fact to alert the customer of the impending maturity.

One suggestion, however -- you might want to start the pre-maturity notices a little later. Insurance companies usually don't start the renewal notice tango until 30 days (or less in some cases) before due date. Your notice earlier than that might only remind the borrower of a particularly distasteful fact -- you've required him to buy something he doesn't think he needs.

First published on BankersOnline.com 2/23/04