Skip to content

Flood Zones, But Coverage Is Not Available

Answered by: 

Question: 
What if property on a loan has improvements and they are in a flood zone, but flood insurance is not available, how can we make this loan and what do we need to do special?
Answer: 

If flood insurance is not available then I assume the community the property is located is a non-participating community. If this assumption is correct then you may close the loan without flood insurance, but you still must provide all the necessary notifications.

You may also require flood insurance to be purchased from a private insurer if you feel it is needed from a safety and soundness perspective.

First published on BankersOnline.com 5/2/05

First published on 05/02/2005

Filed under: 
Filed under lending as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics