Int Q&A – Notice 5 – How long must the lender maintain the record of receipt by the borrower of the Notice of Special Flood Hazards?

Compliance > Lending > Flood > FAQs
Q:  Notice 5 – How long must the lender maintain the record of receipt by the borrower of the Notice of Special Flood Hazards?
 
A:   The record of receipt provided by the borrower must be maintained for the period of time that the lender owns the loan.  Examples of a record of receipt include: the borrower’s signed acknowledgment of receipt of the Notice of Special Flood Hazards; the borrower’s initials on a form that acknowledges receipt; the borrower’s electronic signature that acknowledges receipt, or a certified return receipt if the Notice of Special Flood Hazards was mailed to the borrower. Lenders may keep the record in the form that best suits the lender’s business practices. Lenders may retain the record electronically, but they must be able to retrieve the record within a reasonable time pursuant to a document request from their Federal supervisory agency.
 
 
ADDITIONAL INFORMATION:
This Q&A was included in the Interagency Questions and Answers Regarding Flood Insurance, which were issued on 05/11/2022.  They were published in the Federal Register on 05/31/2022 and may be found here:  https://www.federalregister.gov/documents/2022/05/31/2022-10414/loans-in-areas-having-special-flood-hazards-interagency-questions-and-answers-regarding-flood
 

Add Feedback