Flood FAQs #48 – If the loan and its servicing rights are sold by the regulated lender, is the regulated lender required to provide notice to the Director or the Director’s designee?

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Q:  If the loan and its servicing rights are sold by the regulated lender, is the regulated lender required to provide notice to the Director or the Director’s designee?
 
A:   Yes. Failure to provide such notice would defeat the purpose of the notice requirement because FEMA would have no record of the identity of either the owner or servicer of the loan.
 
 
ADDITIONAL INFORMATION – This Q&A was included in the “Interagency Questions and Answers Regarding Flood Insurance.”   For ease of collection, this has been obtained from the FDIC’s Compliance Examination Manual – April 2016, which may be found here:  https://fdic.gov/regulations/compliance/manual/5/V-6.1.pdf
 

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