Description
This course covers the Flood Disaster Protection Act and related guidance and regulations.
The course begins with an overview of the rule and then addresses the lender’s obligations throughout the life of a covered loan. This includes the steps a lender must take before originating a loan to determine whether the loan is covered and notify the borrower in the event it is.
The course continues by exploring what it means to have adequate insurance at the time a loan is originated and finishes with the obligations lenders have during loan servicing.
What You’ll Learn
After completing this course, students will be able to:
- Explain how Mandatory Purchase requirements protect property owners and lenders
- Identify types of transactions and designated loans that are subject to Mandatory Purchase
- Describe lender requirements to notify borrowers of the need to obtain flood insurance
- Explain how to determine adequate flood insurance coverage, including the detached appurtenant structure exemption that removes certain structures from the requirement
- Describe the categories of private flood insurance and lender action required for each category
- Recognize exemptions from the requirement to escrow flood insurance premiums
- Describe a lender’s options during National Flood Insurance Program (NFIP) reauthorization lapse
- Explain the need to monitor flood insurance coverage for the life of a loan and comply with force placement notice requirements