Description
This course provides an overview of federal laws that mandate flood insurance requirements for federally-backed mortgages, and mortgages and loans obtained through federally insured financial institutions. It explains when and how lenders must ensure mortgage borrowers have flood insurance.
What You’ll Learn
After completing this course, students will be able to:
- Explain the reasons for federally subsidized flood insurance
- Summarize what areas and structures are eligible for federal flood insurance coverage
- Outline lender responsibilities when making, increasing, renewing, or extending a loan secured by a building located in an area designated as a high-risk flood area
- Understand when flood insurance is mandatory and when lenders must provide a flood insurance notice to borrowers
- Determine the minimum amount of flood insurance coverage required
- Summarize borrowers’ flood insurance options
- Outline escrow requirements for loans that require flood insurance
- Explain the procedures involved in force placement of flood insurance
