Int Q&A – Escrow Loan Exceptions 2 – Are escrow accounts for flood insurance premiums and fees required for loans secured by particular units located in multi-family buildings?

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Q:  Escrow Loan Exceptions 2 – Are escrow accounts for flood insurance premiums and fees required for loans secured by particular units located in multi-family buildings?
 
A:   The escrow requirements in the Regulation would not apply to a loan secured by a particular unit in a multi-family residential building if a condominium association, cooperative, homeowners association, or other applicable group provides an adequate policy and pays for the insurance as a common expense. See Q&A Exemptions 1. Otherwise, the escrow requirements generally would apply to loans for particular units in multi-family residential buildings.
 
 
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
 

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