FL | Recently, I had a loan officer ask me for the RCE for manufactured homes because the loan amount is greater than the replacement cost. This problem is not limited to manufactured homes, but it is a problem in FL. We cannot give the RCE. How do we solve this problem? I need clients while maintaining compliance. (yes, I am new.)
Posted by ArgumentFearless1704
6 Comments
When it comes to manufactured homes, you always gotta do some fudging.
>We cannot give the RCE
Why not?
There are RCEs for manufactured homes. I used one for mine.
[replacement cost estimator for manufactured home at DuckDuckGo](https://duckduckgo.com/?origin=funnel_home_website&t=h_&q=replacement+cost+estimator+for+manufactured+home&ia=web)
Uh. Manufactured or mobile home? For manufactured there’s definitely an RCE.
Why can’t you provide the RCE? Also, the loan amount is irrelevant, you don’t insure the loan and those numbers have no impact on the amount of coverage you need to provide.
Here is the verbiage of the letter I send to lenders who ask for an rce. Not original to me.
>Due to an addition to Florida Statute 626.9551, effective July 1, 2021, no one (including a lender) may require an insurance agency or agent provide a replacement cost estimator (RCE) or other insurance underwriting information in connection with a loan. Additionally, an insurance agent or agency is prohibited from supplying the RCE to anyone, even the customer.
>We are, therefore, unable to provide a copy of the RCE for:
[Insert Address Here]
>It is the practice of this agency to insure structures for 100% of their estimated replacement cost as determined by insurance company proprietary software. Building limits are estimates only and are arrived at based on information provided by the policyholder and/or industry standard software used to estimate replacement costs. The actual cost to rebuild the structure may exceed the policy limits, especially during a catastrophic event and/or where an ordinance or law impacts repair or replacement. The agency makes no assurances that the policy limits provided will be adequate to rebuild the structure. If the amount of building coverage is questioned by the lender (or any party) the lender may supply this agency with a full copy of their appraisal on the property. If there is a discrepancy between the appraisal’s estimated replacement cost and the agency’s estimated replacement cost, after consultation with our customer we will ask for their direction relating to the coverage amount.
>The estimated replacement cost of this structure is $[Insert value here]
Banks often don’t have knowledgeable people making these requests and don’t think laws should apply to them . I insured some really nice houses on a big lake in a metro area and as nice as the houses were the lots were worth even more .