Rain, rain, stay away! Updates to flood requirements are on the way.
By Charles Howell, Princeton Mortgage Wholesale
As we worry about rising interest rates causing a draining period in our industry, let’s not forget the many people that are literally draining out their basements. Many parts of the country are under water and it looks like there is only more rain to come. There appears to be some sun light peeking through these dark clouds, however.
Last week, the FHA announced that they are expanding mortgage relief for disaster victims. Efforts are being made to expedite relief to homeowners struggling to make mortgage payments while recovering from the natural disasters. They are helping borrowers keep their existing low-interest rates and loan terms, if they are current with their mortgage payments to begin with.
CoreLogic is also releasing a new Flood Risk tool. The tool appears to account for the “big picture” of flooding incidents, and not just hone in on what has recently happened. Some areas will always be considered “prone to flooding”, but there have also have been some unprecedented and isolated incidents that shouldn’t be considered the new norm to flooding trends. CoreLogic appears to recognize this and are working to allow homeowners to grandfather in more favorable flood insurance rates; even if the current state of risk shows increased property damage due to recent flooding. They are working to leverage improved flood risk technologies in ways to help inform borrowers and lenders of flood details earlier in the process. An earlier review of the details and notifications of changing flood zones should only help save money over the life of the loan. For more on the “Future Flood” happenings, check out HousingWire’s article here.
Hopefully we can all dry out soon, and the relief efforts will be plentiful. As for me, the swamp that has accumulated in my backyard will remain. Upon researching how to install a French drain, and how much it costs to have it installed for you, I quickly realized that I’m not ready for either 😊 ...
Thanks as always,
Photo by Matthew Henry on Unsplash
The opinions expressed in this post are the sole view of the writer and do not reflect the opinion of Princeton Mortgage Corporation.