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#2257025 - 07/21/21 06:15 PM Non-Participating Community
kmenard Offline
Member
Joined: Oct 2014
Posts: 67
We have a customer whose property is in a flood zone but is in a non-participating community. We sent the customer a Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance telling that the property is in a flood zone and insurance with the NFIP is not available. If I understand, under the Flood regulation, flood insurance is not required to close the loan but is a signed copy of the Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance disclosure still required? We have been told in the past by OCC that the notice must be signed but we have never had a loan with property in a non-participating community.

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Flood Compliance
#2257033 - 07/21/21 07:11 PM Re: Non-Participating Community kmenard
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,017
Bloomington, IN
There is no exception in the regulation that I am aware of for not getting the acknowledgement from the borrower the notice was provided if the subject property is located in a non-participating community.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#2257035 - 07/21/21 07:13 PM Re: Non-Participating Community kmenard
kmenard Offline
Member
Joined: Oct 2014
Posts: 67
That was what I was thinking. Thank you!

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