Flood determination and flood insurance
How do we order the flood determination, send the notice when the property is in a special flood hazard area, and chase the flood policy before closing on a mortgage?
Run flood as a gate on the mortgage, from the determination to the policy. Callvu orders the standard determination from the flood vendor when the property is identified, reads it, sends the borrower the notice a reasonable time before closing when the building is in a special flood hazard area, computes the required coverage, asks the borrower's agent for the flood policy through a link, checks it on arrival, and holds closing until the determination, the notice and the coverage are on the file. Live at Community Bank of Mississippi.
Live at Community Bank of MississippiComplex: multi-party handoffsCallvu moves: classify, chase and verify, write back
Last updated November 7, 2026.
The problem today
The determination said zone AE, the notice is not in the file, and the flood policy starts the day after closing.
Flood is the most frequently cited violation in mortgage examinations: a missing notice, coverage short of the requirement, a policy effective after closing, or a determination that was never updated for a remap. Each one is a civil money penalty per loan, and an uninsured loss is the collateral.
The Flood Disaster Protection Act and the agencies' rules require the standard determination on every loan secured by a building, the notice to the borrower within a reasonable time before closing where the building is in a special flood hazard area, coverage at least the lesser of the outstanding principal or the program maximum, escrow of premiums, and force placement after a 45-day notice when coverage lapses. The policy must be effective at closing.
The determination is ordered in a minute. Everything after it is a chase and a check.
How it runs
From the requestto the system of record.
The property address is identified on the loan. Callvu orders the standard flood hazard determination from the flood vendor and opens the flood case on the loan.
- Flood vendor
- Delivers the standard determination and life-of-loan monitoring.
- Borrower
- Receives the notice and acknowledges it; arranges flood coverage where required.
- Insurance agent
- Provides the flood policy or binder through a secure link.
- Processor
- Sees the flood status and the closing hold; reviews exceptions.
- Callvu
- Orders, reads, classifies, notifies, computes coverage, chases the policy, checks it and holds closing.
Classify the determination
The determination is read on delivery: the flood zone, whether the building is in a special flood hazard area, the community's participation in the program, and the map date. A building in a special flood hazard area in a participating community classifies the loan as requiring coverage; a non-participating community classifies it under the lender's policy for those loans.
Notify in time
The notice to the borrower, with the required content (the property is in a special flood hazard area, coverage is required, federal disaster assistance availability, and the escrow requirement), is delivered a reasonable time before closing in the consented channel and acknowledged; the delivery time and the closing date are on the record.
Chase and verify the policy
The required coverage is computed (the lesser of the outstanding principal balance and the maximum available under the program, with the replacement cost considerations the program applies). The agent is asked for the flood policy or binder through a link; it is read on arrival and checked for the insured, the property, the coverage, the deductible, the mortgagee clause and an effective date at or before closing. A short or late policy is sent back with the correction.
Write back and gate
The determination, the notice with its acknowledgment, and the accepted policy are written to the LOS; the flood condition clears; the escrow is set up with the premium; and closing is held until all three are on file. Life-of-loan monitoring from the vendor feeds the servicing flood process for remaps and lapses.
Where it ends: The loan closed with the determination, the notice delivered in time, and flood coverage at the required amount effective at closing on the file, with the escrow and the monitoring set. The Decision Trace shows the classification, the computation and the timing; the Audit Trace shows the order, the notice and the policy.
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
The property identification on the loan; the borrower meets the process in the notice and the agent through a link.
The back office
The processor sees a flood status and a gate, not a checklist item; the servicer inherits the policy and the monitoring.
The Decision Desk
- A disputed determination, a non-participating community, a private policy under the discretionary acceptance rules, or a coverage question goes to the processor or compliance in the Decision Desk with the case and only the allowed outcomes.
Proof
Live at Community Bank of Mississippi.Published results only.
Each result is a published claim, with its code on agents.callvu.com, where its status, source and last verified date are kept.
Community Bank of Mississippi runs TRID loans on Callvu: the completeness check before Processing, the handoff between teams, and the TRID Loan Estimate and changed-circumstance clocks.
MTG-02 · Self-asserted · verified 2026-11-02
Community Bank of Mississippi reports zero rework on its live processes.
BNK-18 · Self-asserted · verified 2026-11-02
Community Bank of Mississippi runs three processes on Callvu: loan processing, lender-placed insurance exceptions and HR reviews.
BNK-11 · Self-asserted · verified 2026-11-02
Questions
What buyers ask next,answered plainly.
When is the determination ordered?
As soon as the property address is on the loan, from the flood vendor on the standard form, and read on delivery.
What holds closing?
A missing determination, a notice not delivered in time, or a flood policy that is short, late or not on file, on a loan secured by a building in a special flood hazard area.
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 policy.
Related processes
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