If we have just closed on a residential mortgage loan and we discover prior to funding the loan that the property may now be at risk due to a natural disaster, do we have the right to withhold funding until we can verify there has been no damage to the property?

What sort of loan? As in what is it for and you need to read your legal agreements - talk to your attorney.

It's a residential mortgage loan. It's a hypothetical question. We are doing our annual disaster training and the question came up.

Is it your recommendation to seek a legal opinion for each loan individually should this scenario arise?

We do loans all over the country and there have been cases where a property was flooded (as an example) the day before we were to fund a refinance.

No - I am talking about having your legal counsel review your legal documents to see if this is mentioned in anyway. If it is not mentioned, then you can begin to assess the risk the bank faces with pulling the plug after closing in different scenarios. Your legal counsel should be able to provide you any potential case law on the issue in your jurisdiction (if any) to use in your risk assessment. There might be a big difference between a dam breaking upstream and house being currently flooded and the fact that there was a heavy rainstorm and there is a flood watch in place for the next week, for example. You need to define what you actually consider a disaster.