The Flood Disaster Protection Act prohibits banks from making, increasing, extending, or renewing a loan secured by improved real estate or a mobile home located or to be located in a Special Flood Hazard Area unless the property securing the loan is covered by flood insurance. Banks must take certain steps to find out if the property is in a flood zone, determine which structures require insurance if there is more than one, and send a notification to the borrower that insurance is required. This course will discuss how a bank determines if flood insurance is required on a secured property and the notice that must be sent to the borrower. This course is intended for all residential mortgage lenders and support staff as well as compliance and operations personnel who monitor flood insurance requirements.
Course Learning Objectives
By taking this online Flood Disaster Protection Act: Applicability and Notifications course, the user will learn to:
- Describe a Special Flood Hazard Area
- Review a Standard Flood Hazard Determination Form
- Determine if a secured property requires flood insurance
- Provide proper notification to borrowers who require flood insurance
This online Flood Disaster Protection Act: Applicability and Notifications course is made up of the following sections:
- SFHA and Determination Form
This Flood Disaster Protection Act: Applicability and Notifications online training course was designed for bank employees.
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