When is a lending institution required to make or obtain a flood zone determination?
A flood zone determination must be made or obtained whenever a federally regulated lender makes, extends, increases or renews a loan secured by a building or mobile home. In addition, federal regulators recommend that lenders and servicers, as a matter of safety and soundness, conduct periodic reviews of existing portfolios and perform prospective analyses on portfolio acquisitions, as well as monitor changes triggered by flood map revisions.
Related Questions
- How long before the loan closing should a lending institution complete or obtain a Standard Flood Hazard Determination Form?
- Can a lending institution use a flood zone determination that was completed for a previous transaction?
- When is a lending institution required to make or obtain a flood zone determination?
