If a customer due to map change no longer requires to carry flood insurance and we have escrows, do we provide them with a notification letting them know that we no longer will require them to carrry flood. Are we require to stop escrowinig for flood once we are notified of the map change?

There is no requirement to stop escrowing the flood insurance premiums unless you want too. If you are going to notify them, I would make sure that you do it very carefully and clearly tell them that while you are no longer requiring them to carry flood coverage as a requirement of the loan, that does not mean that they should cancel their policy, which is a decision that only should be made after sufficient discussion with their insurance agent and possibly their financial planner. .

We have the following paragraph in our letter.

When a property is located in a special flood hazard area it has a 25% chance of being damaged by a flood over a thirty year period. For the same period the property only has a 1% chance of being damaged by fire. For the protection of your property you may wish to discuss with your insurance agent the possibility of maintaining flood insurance coverage.

thank you