“Can we renew a loan which is covered by force placed insurance?” Variations on this question have come up several times in recent seminars I have conducted. The answer to the question is no. If a borrower refuses to obtain flood insurance coverage as a condition of obtaining a loan, the loan is deficient and may not be made. Force placement of coverage is designed for use at any time during the loan in uninsured […]
Category: Flood Insurance
NEW FLOOD INSURANCE Qs AND As
The Agencies are adopting two of the five questions and answers proposed in the 2009 Interagency Questions and Answers: one question and answer relating to insurable value (question and answer 9) and another question and answer relating to force placement of flood insurance (question and answer 61). The Agencies are also withdrawing one question and answer relating to insurable value and have reserved this question and answer for later use (question and answer 10). The […]
Flood Insurance
Horrendous floods recently ravaged Nashville, Tennessee. I am spending the day explaining the details of the National Flood Insurance Act and related laws and regulations to a group of Tennessee bankers.