Answer:
Yes, if a community becomes suspended from the NFIP, the loan continues to be a serviceable loan. The flood insurance policy in force at the time of the community’s suspension will remain in force for the remainder of the term of the policy. If the community is still suspended at expiration of the policy, the financial institution will need to consider force-placing flood insurance through a private insurance provider.
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Learn more about Jack Holzknecht and Kelly Owsley’s webinar
Flood Insurance in Suspended Communities
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