Int Q&A – Servicing 7 – In the event of a merger or acquisition of one lender with another, what are the responsibilities of the parties for notifying the Administrator’s designee (i.e. the insurance provider)?

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Q:  Servicing 7 – In the event of a merger or acquisition of one lender with another, what are the responsibilities of the parties for notifying the Administrator’s designee (i.e. the insurance provider)?
 
A:   If a lender is acquired by or merges with another lender, the duty in connection with NFIP policies to provide notice for the loans being serviced by the acquired lender will fall to the successor lender in the event that notification is not provided by the acquired lender prior to the effective date of the acquisition or merger.

Similarly, for a flood insurance policy issued by a private insurer, the successor lender should provide notice to the flood insurance provider in the event that notification is not provided by the acquired lender prior to the effective date of the acquisition or merger.
 
 
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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