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<br />COMPTROLLER OF THe CURRENCY <br /> <br />The regulations would also require a bank to obtain a written <br /> <br /> <br />acknowledgment from the borrower that he/she was informed that the <br /> <br /> <br />property is o~will be located in a SFHA and that the borrower has <br /> <br /> <br />received the mandatory notice regarding federal disaster assistance. <br /> <br />Flood insurance is required if the improved real property is or will <br /> <br /> <br />be located in a SFHA and is or will be located in a community which <br /> <br /> <br />participates in the NFIP. When required, the policy must cover <br /> <br /> <br />either the lesser of the amount of the loan or the maximum amount <br /> <br /> <br />available through the NFIP. This insurance is to be maintained for <br /> <br /> <br />the life of the loan. Because flood insurance is written annually, <br /> <br /> <br />banks are responsible for ensuring that coverage is renewed. <br /> <br /> <br />Therefore, when designated as mortgagee, the financial institution <br /> <br /> <br />should ensure that a copy of the policy and renewal notices are <br /> <br /> <br />maintained. <br /> <br />Records to Maintain Which Will Ensure CamDliance: <br /> <br />Each financial institution must maintain sufficient records to <br /> <br /> <br />indicate the method used to determine if improved real estate or a <br /> <br /> <br />mobile home placed as security for a loan is located in a SFHA. At <br /> <br /> <br />a minimum, such records would include: 1) copies of official NFIP <br /> <br /> <br />Flood Rate Maps and, 2) if applicable, copies of written contracts <br /> <br /> <br />between the institution and independent vendors or appraisers <br /> <br /> <br />performing the flood assessment. <br /> <br />,16, <br />