July 2015 Flood Final Rule – If there is flood map change after January 1, 2016, do the escrow provisions apply if the building is now in a flood hazard area?

Compliance > Lending > Flood > 2015 Flood Final Rule - Escrows
Q:   If there is flood map change after January 1, 2016, do the escrow provisions apply if the building is now in a flood hazard area?
 
A:  The final rules include mandatory escrow provisions for designated loans secured by residential improved real estate or a mobile home that are made, increased, extended or renewed on or after January 1, 2016.  As a map change is not a triggering event, lenders would not be required to escrow for flood insurance based solely on that change.
 
 

See additional details in the July 2015 Final Rule on Loans in Areas Having Special Flood Hazards, here:  https://www.federalregister.gov/articles/2015/07/21/2015-15956/loans-in-areas-having-special-flood-hazards

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