Answer:
You must make an accurate determination whether any buildings securing the loan are in a SFHA before you make the loan. You may do this by reviewing the maps, or you may do it through a 3rd party vendor. The "final" determination must be on the SFHDF. Properties in a SFHA that are located in a non-participating community do not require flood insurance, but you must still provide all necessary notifications to the borrower before the loan is made.
First published on BankersOnline.com 6/06/05