Here's what QUICKEN's website has to say about FLOOD DETERMINATION FEES.
Flood Certification Fee
Federal law requires that you obtain flood certification insurance if your property lies in a flood zone. As part of our evaluation of your property, we appoint a flood determination company to tell us whether or not your house is located in a flood zone. If your house is located in a flood zone, you will be required to purchase flood insurance. The flood certification fee that is issued to the client covers the cost of the assessment and is included in closing costs and fees.
And these flood determination companies issue the "determination form letter". Lenders incorporate this into their software queries.
So who owns the flood determination companies, many service providers are owned by title companies as their subsidiaries. That is why we have all these Affiliated Business Disclosures in lenders packages. They either own these companies or the title company may own them. Must be disclosed in any cas.
BoA owns a lot of these companies, check out their Affiiliated Business Disclosures, lots of companies listed there.
These days with all the new regulations since the meltdown, no additional fees can be added to the Settlement Sheet after the GFE is disclosed to borrower. Not like the Ninja loan days.
By settlement agencies, I mean escrow and title. It is the escrow agent, who at the final hour is pulling the HUD together wih lenders' processor, making sure everything is tight for the final number for cash to close or cash back...it gets narly here because many lenders have restrictions about no cash out or not to exceed a certain amount. |
