Flood determination and insurance verification
How do we handle flood determinations, the borrower notice and proof of flood insurance at origination and on a remap, with the notice on file before closing?
Run flood as a step that cannot be skipped. At origination, and whenever a map change puts collateral in a special flood hazard area, Callvu orders the determination from the flood vendor, reads it, delivers the borrower notice in time, checks the proof of insurance against the required coverage, chases the borrower for a policy that is missing or short, tracks the 45-day force placement clock, and holds closing or triggers force placement by rule, with everything on the loan.
In scopeSimpleCallvu moves: chase and verify, classify, write back
Last updated November 7, 2026.
The problem today
The determination is in the file, the notice is not, and the policy expired last year.
Flood is the most cited violation in bank examinations, year after year, and the reasons are mundane: a loan closed without the notice to the borrower, coverage below the required amount, a policy that lapsed with no force placement, a remap nobody acted on. The determination was ordered; the rest was a checklist.
The Flood Disaster Protection Act and the banking agencies' rules require a determination on the standard form for every loan secured by a building, a notice to the borrower a reasonable time before closing when the building is in a special flood hazard area, coverage at least equal to the lesser of the outstanding principal or the maximum available, escrow of premiums where applicable, and force placement after a 45-day notice when coverage lapses. Each requirement has a date.
The cost of a violation is a civil money penalty per loan, and the cost of an uninsured loss is the collateral.
How it runs
From the requestto the system of record.
A loan secured by a building reaches the point in origination where collateral is identified, or a map revision from the flood vendor affects an existing loan, or a policy expiry approaches. Callvu opens the flood case on the loan.
- Borrower
- Receives the notice, provides proof of insurance, and is told when coverage is short or lapsing.
- Loan operations
- Sees every flood case and its clocks, and decides exceptions in the Decision Desk.
- Flood vendor
- Delivers the standard flood hazard determination and life-of-loan monitoring.
- Callvu
- Orders and reads the determination, delivers the notice, checks coverage, chases, tracks the clocks, and records.
Determine and classify
The determination is ordered from the vendor on the standard form for the collateral address and read on delivery. A building in a special flood hazard area classifies the loan as requiring coverage; the required amount is computed as the lesser of the outstanding principal and the maximum available under the program, and the escrow requirement is applied where it holds.
Notify in time
The notice to the borrower (and to the servicer where there is one) with the required content is delivered a reasonable time before closing, in the consented channel, and the borrower's acknowledgment is captured. The delivery time and the closing date are on the record.
Chase and verify coverage
The borrower provides the declarations page through a link; Callvu reads it and checks the insured, the property, the coverage amount against the requirement, the effective dates and the mortgagee clause. A short or missing policy is requested with what is needed. Closing is held until coverage is on file where it is required.
Life of loan
A map revision from the vendor's monitoring or a policy expiry opens the case again: the determination is updated, the notice goes out, and the 45-day force placement clock runs from the notice. Where the borrower does not provide coverage in time, force placement runs by rule and the premium is charged as the rules allow.
Write back
The determination, the notice with its delivery time, the proof of insurance with its check, and every force placement step are written to the loan system, and the flood status is reported for the exam.
Where it ends: Every covered loan has a determination, a notice delivered before closing, and coverage at the required amount on file, and every lapse ran the 45-day clock to force placement with the notices recorded. The Decision Trace shows the determination, the computation and the timing; the Audit Trace shows every notice and document.
Runtime enforcement
What is enforcedwhile the work runs.
The regulations preloaded in Callvu Studio and the bank's own policies, applied as steps that run, not lines in a binder. A step that breaks a rule does not run, so a completed run was compliant.
The handoff
Between the front doorand the back office.
The front door
Origination, a remap from the vendor, or a policy expiry. The borrower meets the process in the notice and the request for proof of coverage.
The back office
Loan operations sees every flood case with its clocks; closing cannot run around the requirement.
The Decision Desk
- A disputed determination, a private policy under the discretionary acceptance rules, or a coverage question goes to loan operations in the Decision Desk with the case and only the allowed outcomes.
Proof
In scope.Proof at scale, not one process at a time.
The kind of process Callvu runs in production for customers in this industry. Ask for a reference on this exact process. The results below are the industry's published proof; each claim code links to its record on agents.callvu.com.
Questions
What buyers ask next,answered plainly.
When must the borrower be notified?
A reasonable time before closing, when the building is in a special flood hazard area. The delivery time and the closing date are on the record.
How much coverage is required?
The lesser of the outstanding principal balance and the maximum available under the program, computed by rule and checked against the declarations page.
What happens when a policy lapses?
The deficiency notice goes out, the 45-day clock runs, and force placement happens by rule at its end if the borrower has not provided coverage.
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