Flood Determination Form & Signature Requirements

Question: Do we have to get the customer's signature on the flood determination form?

Answer: There is no signature requirement on the FEMA flood hazard determination form. The form must be fully and properly completed (including your institution's ID number and a loan identifier) and kept in the loan file. However, there is no signature requirement on this form. The only notice requirement is triggered if the property to secure the loan is actually located in a flood hazard zone. Then notices have to fly.

When the customer's property is in a flood hazard area, the lender must keep in the file proof that the customer received the notice of flood hazard. One way of keeping such proof is getting the customer's signature on a copy of the notice.

Copyright © 2002 Compliance Action. Originally appeared in Compliance Action, Vol. 7, No. 15, 12/02