why can mortgage companies buy mortgages from other lenders and then require additional insurance?

Question by russlovesdeb: why can mortgage companies buy mortgages from other lenders and then require additional insurance?
caldwell banker sold my mortgage to citimortgage ..
citimortage purchased flood insurance on my behalf ..
my home is not in a flood zone
citimortgage is making me prove that my house is not in a zone through fema ..

when i purchased my house is 2006 Caldwell Banker provided me a certificate stating that home was not in a flood zone .. the sell was contigent on the house not being in a flood zone

Best answer:

Answer by googie
Report this to the State Commissioner of Insurance because there is Flim-Flam being perpetrated . Get this to your local radio and TV station as well as your newspaper and send a copy to City Mortgage. If you have proof regarding the contingent clause that the house was not in a flood zone, report it to the Attorney General’s Office pronto. These birds are giving banking a bad name .

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2 Responses to “why can mortgage companies buy mortgages from other lenders and then require additional insurance?”

  1. Patrick says:

    You have the proof. Give them a copy of the certificate.

    One thing to note, flood zones do occasionally change. what was once not a flood zone can be a flood zone later. There is a chance, slim one but still a chance, that your area has recently been deemed a flood zone. I would imagine that you would have heard about this from a neighbor or something but you could be the first one put in the situation.

    Good Luck!

  2. Ed Atun says:

    The flood zones have been tripled in size. You may be in one. No need to guess. http://www.floodsmart.gov. If you are not in one, you win. If you are you pay.


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