Answer:
If the community is nonparticipating because it has chosen to not participate in the NFIP, the bank may still make, increase, renew, or extend the loan on property located in the nonparticipating community; however, the risks associated with that loan should be carefully evaluated. Because of the lack of NFIP flood insurance coverage and limited federal disaster assistance available, a lender may want to require the purchase of private flood insurance, if it is available.
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Learn more about Jack Holzknecht and Kelly Owsley’s webinar
Flood Insurance in Suspended Communities
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