[Liability Insurance] FW: flood insurance--no waiting period---- exceptions--private mortgage --- purchase money mortgage

[Wright, Wm. Cary]

Everyone:

I am forwarding an email from Jay Mussman that may be of interest to you if you are involved in real estate closings.

Thanks to Jay for bringing this to the attention of the Committee.

Regards,

Cary

From: Jay D. Mussman [mailto:jmussman at chapin-law.com]
Sent: Thursday, June 27, 2013 12:26 PM
To: Wright, Wm. Cary
Subject: flood insurance--no waiting period---- exceptions--private mortgage --- purchase money mortgage
Importance: High



Good afternoon.

I have recently experienced an issue regarding the above. The below is a summary of the matter.

If a seller agrees to provide the buyer of his/her property a purchase money mortgage in connection with the sale.........I was initially advised by a local insurance agency that the ability to obtain flood insurance with coverage effective as of the closing date would not be permitted. Upon further inquiry, I contacted the source, FEMA in DC. FEMA disagreed with the agency. I provided the agent with my contact at the Lender's  Compliance Office. The telephone number for the Office is 202.212.2183. As a result, the flood insurance was issued with an immediate effective date.

Feel free to share with the committee members.


Thank you
Jay

 "Celebrating Over 40 Years of Commitment to Clients, Counseling and Community"
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Jay D. Mussman
Chapin, Ballerano & Cheslack
Telephone:  561-272-1225 x234
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E-mail: jmussman at chapin-law.com<mailto:jmussman at chapin-law.com>
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