Flood Disaster Protection Act
Description: Flood Disaster Protection Act provides an overview of the requirements enacted by Congress And the mandated flood insurance requirements for all federally backed mortgages, and mortgages and loans obtained through federally insured and regulated financial institutions. This course explains the coverage requirements and exemptions, and the disclosures required in these transactions.
Audience: Frontline employees involved in the lending process, including mortgage, consumer and small business lenders, loan processors and loan servicing.
Learning Objectives: After completing this course, students will be able to:
- Describe the circumstances and properties that require a flood determination
- Explain the types of loans subject to the mandatory requirement to purchase flood insurance
- Describe the minimum flood insurance purchase amounts
- Describe the process for notifying borrowers who have properties in a special flood hazard area
- Describe what constitutes sufficient proof of flood insurance and when it must be provided to the bank