FORUM PROFILE

Extending a loan

Home Forums Flood Disaster Protection Act Extending a loan

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #2422

    If the lender subscribes to Life of Loan coverage from their flood determination vendor, is it necessary to pull a new flood determination with the subsequent notice when “extending” a loan, i.e., the borrower requests a 1-month extension for their payment due next month and the lender also extends the loan maturity date out 1 month from the original maturity? ❓

    #2807
    jholzknecht
    Keymaster

    Generally, a creditor is required to obtain a flood hazard determination each it makes, increases, renews or extends a loan. However if the original determination is less than seven years old and the flood maps and zones have not changed the creditor may rely on the original determination.

Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.