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(2) FEDERAL AGENCY LENDERS.--Each Federal agency lender shall by regulation require and provide for escrow and payment of any flood insurance premiums and fees relating to residential improved real estate and mobile homes securing loans made by the Federal agency lender under the circumstances and in the manner provided under paragraph (1). Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under paragraph (1). (3) APPLICABILITY OF RESPA. --Escrow accounts established pursuant to this subsection shall be subj ect to the provisions of section 10 of the Real Estate Settlement Procedures Act of 1974. (4) DEFINITION. --For purposes of this subsection, the term "residential improved real estate" means improved real estate for which the improvement is a residential building. (5) APPLICABILITY. --This subsection shall apply only with respect to any loan made, increased, extended, or renewed after the expiration of the 1-year period beginning on the date of enactment of the Riegle Community Development and Regulatory Improvement Act of 1994. (e) 7 PLACEMENT OF FLOOD INSURANCE BY LENDER. - - (1) NOTIFICATION TO BORROWER OF LACK OF COVERAGE. - - If, at the time of origination or at any time during the term of a loan secured by improved real estate or by a mobile home located in an area that has been identified by the Director (at the time of the origination of the loan or at any time during the term of the loan) as an area having special flood hazards and in which flood insurance is available under the National Flood Insurance Act of 1968, the lender or servicer for the loan determines that the building or mobile home and any 7Sec. 524, National Flood Insurance Reform Act of 1994, Public Law 103-325, approved September 23, 1994, added subsection (e). 9