- This topic has 2 replies, 2 voices, and was last updated 1 year, 1 month ago by
.
Viewing 3 posts - 1 through 3 (of 3 total)
-
Posts
-
An officer has asked if a borrower uses an assignment of note and mortgage as collateral and the property is located in a flood hazard area, would the bank or the borrower (holding the owner financed note and mortgage) ultimately be responsible for validating and tracking flood insurance?
The regulations require a financial institution to require flood insurance when making, increasing, renewing or extending a loan secured by a building located in a special flood hazard area. It does not appear your loan is secured by a building; it is secured by the note. So, the flood insurance regulations do not apply to the transaction. If the borrower is a financial institution then it should comply with the flood regulations.
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.