Requiring optional flood coverage

Answered by:

Question:

If a flood determination states that the property is not in a SFHA; however, the loan officer is aware that the area is flood prone, can the officer require the customer to get flood insurance?

Answer:

Yes. A lender can always require flood insurance above and beyond what the Regulations require to protect the collateral securing their loan.
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Part I - Flood Insurance Compliance - A Two-Part Companion Webinar Series