One of our loan programs has just started printing out an additional disclosure letter with the flood determination forms for our borrowers to sign and I am wondering if there is some new flood requirements out there that I am unaware of?

When we print out our flood determination form, an additional letter explaining the purpose, information and requirements of the flood determination form prints out for the borrower to sign confirming their understanding. In addition, the letter suggests to the borrowers to be aware that they may be required to obtain flood insurance if their property becomes classified in a flood zone.

If this new letter/disclosure is required now, do we have the borrower sign before or during closing on the loan?

That notice has been around for a very long time. Most of us have had it turned off because it is not required. Others use it as an informational tool due to the information the notice contains.

It's your choice, for now, whether you use it or not.