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Documents Related to Flood Regulations

Flood Related Documents

Documents Related to Flood Regulations

Federal flood regulations require mortgage lenders to provide documents and disclosures when originating and servicing mortgage loans. Certain documents are required for all mortgage loans, while others are required when the subject property is located in a special flood hazard area (SFHA). The table below lists the flood related documents and disclosures that are applicable for consumer purpose residential mortgage loans. The list is not exhaustive since additional or alternate documentation may be applicable or used in certain circumstances.

Source :www.MortgagesAnalyzed.com
Document Type Required Applicability    Citation    E-Sign Form
Notice Of Special Flood Hazards Disclosure Yes When subject property is located in a special flood hazard area (SFHA) Reg H (12 CFR 208.25 et al) Yes Written
Standard Flood Hazard Determination Form Form Yes All mortgage loans Reg H (12 CFR 208.25 et al) Yes Written
Notice of the Option to Escrow Disclosure Yes Any mortgage loan that has LPMI Reg H (12 CFR 208.25 et al) Yes Written
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Flood Regulations

The federal flood laws and regulations include:

  1. National Flood Insurance Act of 1968
  2. Flood Disaster Protection Act of 1973
  3. Regulation H, Subpart B—Investments and Loans, Loans in areas having special flood hazards (12 CFR 208.25; 12 CFR 22; 12 CFR 172; 12 CFR 339; 12 CFR 572; 12 CFR 760;)
Source :www.MortgagesAnalyzed.com

General Requirements for HPA Disclosures

Fees for Disclosures

The lender may charge a reasonable fee for flood determination. However, fees for other disclosures and documents may not be charged.

Disclosures in Electronic Form

Flood disclosures and documents that is required to be provided in writing can be provided to the borrower in electronic form as long as it provided in compliance with the requirements of E-SIGN Act.

Record Retention

The record retention requirements vary for different documents. Information is presented for documents where required by regulations,

  • Standard Flood Hazard Determination Form (SFHDF): As per federal regulations (Regulation H - 12 CFR 2018), you should maintain a copy of the SFHDF for the period of time that you own the loan.
  • Notice of Special Flood Hazards: As per federal regulations (Regulation H - 12 CFR 2018), you should maintain a record of the receipt of the notices by the borrower and the servicer for the period of time that you own the loan. Additionally, we recommend you maintain a copy of the actual notice sent to the borrower.

Updated: Feb 19, 2016

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Federal flood regulations require mortgage lenders to provide documents and disclosures
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