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Escrow requirement and zone change

Answered by: 

Question: 
In a zone change scenario, does the escrow requirement apply to residential improved real estate or mobile home that went into a special flood hazard area?
Answer: 

Remember the escrow requirements are triggered when a MIRE event takes place. So, if a property that previously was not in a flood zone is remapped into a flood zone, no action is required unless and until you make, increase, renew or extend a loan. If you deem the bank insecure as a result of the remapping and your loan documents permit, then flood insurance could be required.

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Learn more about Jack Holzknecht’s webinar Frequent Flood issues

First published on 12/06/2020

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