Scenario: commercial loan with properties in a special flood hazard area. We are requiring escrow for taxes. Do we have to require escrow for flood insurance? I'm reading page 39-40 of the Mandatory Purchase of Flood Insurance Guidelines and want to make sure I correctly understand this section. Thanks in advance for your help.

If you escrow for anything on a loan, then you must escrow for flood insurance if its required on a loan.

It depends. §339.5 indicates this only applies to loans secured by residential real estate or a mobile home.

Thank you, David.