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Why are mortgage companies, and or lending institutions involved in requiring flood insurance?

April 26, 2017companies flood Institutions Insurance involved lending mortgage requiring

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Why are mortgage companies, and or lending institutions involved in requiring flood insurance?

1 Answer

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10 Posted

The federal government first mandated flood insurance coverage for properties in designated flood hazard areas in 1973 by requiring federally regulated banks, mortgage companies, loan servicers and other lending institutions to make flood insurance coverage a condition of the loan.