Examples of Residential Improved Real Estate

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Question:

I need examples of residential improved real estate or mobile homes that are covered under the Final Rule effective Jan 1, 2016 for the escrow of flood premiums. HPML requirements cover the PRIMARY residence or dwelling for which already escrow.

Answer:

From the section by section analysis of the final rule:

"the institution should include all loans secured by residential improved real estate or a mobile home, regardless of whether the loan is for a consumer purpose."

"residential improved real estate” does not distinguish whether a building is single- or multi-family, or owner- or renter-occupied, and includes single-family dwellings, two- to four-family dwellings, multi-family dwellings containing five or more residential units, and mixed-use buildings, so long as the building is used primarily for residential purposes.

Footnote 37 also states:
37 “Residential property means a dwelling unit, common areas, building exterior surfaces, and any surrounding land, including outbuildings, fences and play equipment affixed to the land, belonging to an owner and available for use by residents, but not including land used for agricultural, commercial, industrial or other non-residential purposes, and not including paint on the pavement of parking lots, garages, or roadways.” 24 CFR 35.110.