What are the major obligations for lending institutions with respect to flood zone determinations?
Lending institutions have the following obligations: (1) Determine whether the building is or will be located in an SFHA; (2) Document the flood hazard determination; (3) Require that flood insurance (when it is required) is obtained to the appropriate limit; and (4) Ensure that required flood insurance is maintained for the term of the loan or added if the property is subsequently determined to be in an SFHA.
Related Questions
- What do the Regulators consider to be violations of the flood insurance regulations and what are the penalties that can be imposed on lending institutions?
- Can a lending institution use a flood zone determination that was completed for a previous transaction?
- What are the major obligations for lending institutions with respect to flood zone determinations?
