Is the borrower's signature and date required on the Notice of Special Flood Hazard Area Participation Community form? I know it is a required document when the property securing the loan is determined to be in a flood zone. I'm looking for clarification on this for an audit I'm doing. Is it a violation if it is not signed? Thanks.

Gotta be signed. It says "I have reviewed the above information and acknowledge receipt of a copy of this document" above the sig line. You can't demonstrate for your audit that they saw it without their sig. And that's what you are auditing for - - - that they were made aware that the property was in the zone and needs insurance. Watch that the boxes are checked if you use one form with checkboxes. Our software wasn't checking boxes one year.

Thank you, this confirms our concern....

Also, even if they aren't in a flood zone, their signature shows that you have counseled them on the fact that they may be declared in a flood zone eventually. No surprises, no UDAAP

Reviving this thread. Do ALL borrowers need to sign the Notice to Borrower?

Question #73

https://www.bankersonline.com/sites/default/files/tools/flood_faq_2011_10_17.pdf

As far as I'm aware, it seem most lenders do NOT provide the notice if the borrower is NOT in a flood zone. Why provide them that notice if it's not required. That would open yourself up to having that form audited/examined for signatures and dates, when you never needed to provide it to begin with.

Since this old thread is re-opened for additional discussion, allow me to revisit the original question: "Is it a violation if the 'Notice of Special Flood Hazards...' is not signed by the borrower?"

For a general audience, the correct answer is "it depends", not "yes." Nothing in the flood regulations requires a lender to obtain the borrower's signature on this notice form. The requirement (from Fed Reg. H) is:

(3) Record of receipt. The member bank shall retain a record of the receipt of the notices by the borrower and the servicer for the period of time the bank owns the loan.

Although receipt language and a signature line on the NSFH form may be the most efficient and popular way to create the record necessary to comply with this requirement, any other reliable method will be equally compliant. If your bank has a procedure that requires the use of forms with onboard receipts, then it's accurate to find a procedural violation when these forms are not signed--but you could still be in compliance with the regulation if the lender obtained some other type of signed receipt.