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.
|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|
The federal flood laws and regulations include:
The lender may charge a reasonable fee for flood determination. However, fees for other disclosures and documents may not be charged.
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.
The record retention requirements vary for different documents. Information is presented for documents where required by regulations,
Updated: Feb 19, 2016