Are you familiar with the terms “wet funding” and “dry funding” as it relates to flood insurance? And, more specifically, how it affects when flood insurance must be in place? The Flood Insurance FAQs point out that the Regulation states that a lender cannot “make” a loan secured by a property in an SFHA without adequate flood insurance coverage being in place. A lender should use the loan “closing date” to determine the date by which flood insurance must be in place for a designated loan. FEMA deems the “closing date” as the day the ownership of the property transfers to the new owner based on State law. The “closing date” is dependent on whether you are a “wet funding” or “dry funding” State.
David explains more in the video.
Video Highlights:
- David discusses the differences between wet funding and dry funding states.
- Wet and dry funding comes into play when there is a title transfer.
- "Dry-funding" states typically include Alaska, Arizona, California, Hawaii, Idaho, Nevada, New Mexico, Oregon and Washington; however some of these may still require wet or dry fundings depending on the jurisdiction.
Published
2023/08/11
David’s banking career began as a field examiner for the FDIC in 1990. He later became a Compliance Officer and Loan Officer for a small bank. In 1993, he established Banker’s Compliance Consulting. Along with his amazingly talented Team, he has written numerous compliance articles for prestigious banking publications and has developed compliance seminars that Banker’s Compliance Consulting produces.
He is an expert in compliance regulations. He is also a motivational speaker and innovative educator. His quick wit and sense of humor transforms the usually tiring topic of compliance into an enjoyable educational experience. David is on the faculty of the American Bankers Association National Compliance Schools and has served on the faculty of the Center for Financial Training for many years. He also is a frequent speaker at the ABA’s Regulatory Compliance Conference. He is also a trainer for hundreds of webinars, is a Certified Regulatory Compliance Manager (CRCM) and has been a BankersOnline Guru for many years. The American Bankers Association honored David with their Distinguished Service Award in 2016.
David and his wife Karen have three adult children, four grandchildren (none of whom live at home!) and two cats (of which Dave is allergic … the cats, not the children!). They recently moved to an acreage outside of Lincoln, Nebraska where he gets to play with his tractor. When possible David can be found fishing, making sawdust in his shop, or playing the guitar and piano. He also enjoys leading worship at his church.
