Flood FAQs #77 – In the case of a servicer affiliated with the lender, is it necessary to provide the notice?

Compliance > Lending > Flood > FAQs
Q:  In the case of a servicer affiliated with the lender, is it necessary to provide the notice?
 
A:   Yes. The Act requires the lender to notify the servicer of special flood hazards and the Regulation reflects this requirement. Neither contains an exception for affiliates.
 
 
 
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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