Int Q&A – Escrow Loan Exceptions 1 – Are escrow accounts for flood insurance premiums and fees required for commercial loans that are secured by residential property?

Compliance > Lending > Flood > FAQs
Q:  Escrow Loan Exceptions 1 – Are escrow accounts for flood insurance premiums and fees required for commercial loans that are secured by residential property?
 
A:   No. Extensions of credit primarily for business, commercial or agricultural purposes are not subject to the escrow requirement for flood insurance premiums and fees, even if such loans are secured by residential improved real estate or a mobile home. See Q&A Exemptions 1 for further information on the definition of residential property.
 
 
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