Question:  Some properties that were not in flood zones when we made loans secured by them are now in the revised flood maps.  What must we do?

 

Answer:  Require flood insurance.  Notify the borrower that he must obtain flood insurance that is not less than the minimum amount required under the law.  Explain that he has 45 days to purchase.  If he doesn't, then the bank will force place.  Then tickle for the 45 days and force place if necessary.

 

FEMA is looking at the levees on the Rio Grande.  Right now, they are not up to par.  The result is likely to be revisions to the flood maps to include property near these inadequate levees in flood zones!