FDIC FAQs – What are the bank’s responsibilities if the borrower disputes the property is in a special flood hazard area?

Compliance > Lending > Flood > FAQs
Q:  What are the bank’s responsibilities if the borrower disputes the property is in a special flood hazard area?
 
A:    There is no flexibility in the flood insurance requirements. If the determination shows the improvements are in a special flood hazard area, flood insurance is required.   The borrower can pursue a Letter of Map Amendment (LOMA) from FEMA. Until a LOMA is obtained, insurance is required.
 
 
ADDITIONAL INFORMATION:
This Q&A was included in the FDIC’s Flood Insurance Videos, which were updated in 2016, which may be found here:   https://www.fdic.gov/news/news/financial/2016/fil16018.html
 

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