July 2015 Flood Final Rule – What is Appendix B – sample clause regarding option to escrow?

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Q:   What is Appendix B – sample clause regarding option to escrow?
 
A:   As part of the July 2015 flood final rule, a new Appendix B was included.  Appendix B provides sample verbiage for communicating an option to escrow for outstanding loans. 
 
It communicates to a borrower that they have the option to escrow premiums and fees for payment of their flood insurance policy that covers a residential building or mobile home that is located in a special flood hazard area that secures their loan. 
 
 

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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