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Flood Zones, But Coverage Is Not Available

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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?

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 5/2/05

First published on 05/02/2005

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Filed under lending as: 

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