Escrow Flood Insurance if Mortgage on Prop in Zone

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Question:

If a property is in the flood zone and we have a mortgage on it, is the customer required to escrow the flood insurance?

Answer:

"If a bank requires the escrow of taxes, insurance premiums, fees, or any other charges for a loan secured by residential improved real estate or a mobile home that is made, increased, extended, or renewed ... the bank shall also require the escrow of all premiums and fees for any flood insurance ...." [FDIC regulations at 12 CFR 339.5]

First published on BankersOnline.com 1/21/13