Have you ever force placed flood insurance and added the insurance premium to the existing loan balance? We wrote an article about this in our January 2016 Newsletter, entitled, “Adding Force Placed Flood Insurance Premiums to the Loan Balance: Is this a MIRE event?” We gave some insight about what we knew regarding the issue at that time and we’ve finally received more information!
We’ve had extensive conversations with the FDIC regarding an internal memo that indicates adding force placed flood insurance premiums to the existing loan balance is a triggering event for the flood requirements. This interpretation literally opens the compliance floodgates; which may include a new flood determination, notice requirements, flood insurance calculations, escrows and more!
Want to know more about the effects of this interpretation? Join us on March 2nd for the second part of our two-part webinar series on the flood insurance compliance requirements so we can give you all the details. Didn’t catch part one of the series? No need to worry. Your registration will get you access to both parts. You can attend the part two live webinar on March 2nd and then about two weeks after that webinar, you will receive a downloadable audio/video recording of the entire series (part 1 & part 2) as well as written answers to all the questions asked during both webinars at no extra cost.