Laserfiche WebLink
<br />(b) 4 REQUIREMENT FOR MoRTGAGE LoANS.-- <br /> <br />(1) REGm.ATED LENDING INSTITUTIONS. - - Each Federal <br />entity for lending regulation (after consultation and <br />coordination with the Financial Institutions Examination <br />Council established under the Federal Financial <br />Institutions Examination Council Act of 1974) shall by <br />regulation direct regulated lending institutions not to <br />make, increase, extend, or renew any loan secured by <br />improved real estate or a mobile home located or to be <br />located in an area that has been identified by the <br />Director as an area having special flood hazards and in <br />which flood insurance has been made available under the <br />National Flood Insurance Act of 1968, unless the <br />building or mobile home and any personal property <br />securing such loan is covered for the term of the loan <br />by flood insurance in an amount at least equal to the <br />outstanding principal balance of the loan or the maximum <br />limit of coverage made available under the Act with <br />respect to the particular type of property, whichever is <br />less. <br /> <br />(2) FEDERAL AGENCY LENDERS. --A Federal agency lender <br />may not make, increase, extend, or renew any loan <br />secured by improved real estate or a mobile home located <br />or to be located in an area that has been identified by <br />the Director as an area having special flood hazards and <br />in which flood insurance has been made available under <br />the National Flood Insurance Act of 1968, unless the <br />building or mobile home and any personal property <br />securing such loan is covered for the term of the loan <br />by flood insurance in the amount provided in paragraph <br />(1) . Each Federal agency lender shall issue any <br />regulations necessary to carry out this paragraph. Such <br />regulations shall be consistent with and substantially <br />identical to the regulations issued under paragraph (1) . <br /> <br />(3) GoVERNMENT-SPONSORED ENTERPRISES FOR HOUSING.--The <br />Federal National Mortgage Association and the Federal <br />Home Loan Mortgage Corporation, shall implement <br />procedures reasonably designed to ensure that, for any <br />loan that is-- <br /> <br />4Sec. 522, National Flood Insurance Reform Act of 1994, <br />Public Law 103-325, approved September 23, 1994, amended <br />subsection (b) by striking out subsection (b) in its <br />entirety and inserting this new subsection (b) in lieu <br />thereof. <br /> <br />6 <br />