FDIC FAQs – How to determine when a structure “does not serve as a residence”

Compliance > Lending > Flood > FAQs
Q:  How to determine when a structure “does not serve as a residence”
 
A:    Structure could serve as a residence if it includes sleeping, bathroom or kitchen facilities, but not all three facilities are necessary.  Lender should focus on the structure’s intended use.   Lender must make good faith determination as to whether detached structure serves as a residence.
 
 
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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